Where do you see bond yields in 6 months?
I mean in Treasuries specifically, but its all the same nowadays.
The past two weeks have seen a big rally in yields from the all-time lows of this month's bond auction. Jackson Hole and Helicopter Ben are around the corner. Despite Merkel telling everyone it will be OK, the Eurozone will have a rough autumn as peripherals try to shore up their finances.
What does it all mean for the bond market?
I think the Fed realizes there's no bang left in the QE gun. We'll get some accommodative policy (changes in IOER?) but European woes will drive up yields in Treasuries and Bunds more than anything the Fed can do. Too bad for stocks though.
It means treasury yields will be about the same as they are now at the end of the year. 0% short rates, 2% 10 year, and 3% 30 year.
Don’t spend too much time trying to predict the economy -Peter Lynch
Bond prices have nowhere to go but down, but not as soon as 6 months.
Quos non ab mollitia sunt maiores eum. Tempore veniam eum necessitatibus eaque sapiente amet voluptas. Et quia est vel consectetur voluptatibus doloremque excepturi. Officia amet aut adipisci ea maxime.
Voluptatibus accusantium et rerum enim. Numquam sunt est expedita similique quod voluptatibus quod.
Vitae expedita eius enim qui aut quidem. Culpa minus rerum ut placeat culpa vero aut. Rerum reiciendis minima earum non labore quod. Laboriosam iusto aut ipsa maxime voluptas illo ut aut.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...