bondmarket
The iShares 20+ Year Treasury Bond (TLT) ETF has crawled back in the past few months as concerns about the American economy have risen. The TLT ETF fund jumped to a high of $100 earlier this month, its highest point since May 2021. TLT ETF inflows riseThe iShares 20+ Year Treasury Bond ETF is a big fund that invests in long-dated US government bonds. It has done well this year as the amount of inflows have jumped in the past few months. Data by ETF.com shows that it has added over $8 billion in inflows this year, bringing its total assets under management to over $61 billion. It has had inflow...
Invezz
UK government bonds surged on Monday, leading a global bond market rally as investors bet on the Bank of England (BoE) lowering interest rates later this week. The yield on ten-year gilts dropped by 0.08 percentage points to 4.02%, marking the most significant daily decline in six weeks. This shift indicates increased market confidence that the BoE will cut rates, with traders in the swaps market now placing a 60% probability on a rate cut decision during Thursday’s meeting, up from an even split the previous week. Market reactions ahead of chancellor’s speechThe bond market rally comes just b...
Invezz
In the face of potential US election upheaval, investors are turning to frontier-market government bonds for protection. These high-yield debt instruments from less advanced economies are seen as less vulnerable to geopolitical shifts and US policy changes compared to investment-grade countries, Bloomberg reported. According to the report, money managers at William Blair Investment Management and Amundi SA are diversifying their portfolios with frontier-market government bonds — the high-yield debt of less advanced economies in the developing world such as Nigeria and Kazakhstan — saying these...
Invezz
In a notable development for the financial markets, US blue-chip companies have ramped up bond issuance to the highest rate for any July in six years, driven by robust investor demand and a strategic move to secure high yields ahead of anticipated Federal Reserve rate cuts, Bloomberg reports. According to the latest data, US investment-grade bond issuance soared to nearly $92.2 billion in July, marking the largest monthly volume since the $123 billion recorded in 2017. This impressive figure not only exceeds the top forecast of $85 billion but also reflects a substantial surge in market activi...
Invezz
European shares saw an uptick on Thursday, with the STOXX 50 index climbing 0.3% and the broader STOXX 600 index gaining 0.4%. This rebound followed a three-day losing streak, as investors eagerly awaited the European Central Bank’s (ECB) monetary policy decision. Traders await the ECB’s stance on interest ratesMarket focus is firmly on the ECB, which is expected to keep interest rates unchanged. Investors are keenly watching for any hints of future rate cuts. The central bank’s decision, along with its accompanying statement, is anticipated to significantly influence market sentiment and trad...
Invezz
The Ibovespa index saw a decline below 128,800 on Monday, halting its ten-day upward streak amid global geopolitical uncertainties triggered by a recent assassination attempt on US presidential candidate Donald Trump. This shift in market sentiment coincided with revelations from the latest Focus Bulletin, which highlighted evolving expectations regarding Brazil’s central bank monetary policies for 2024. The report indicated a notable decrease in inflation projections after nine consecutive weeks of increases, alongside modest gains in GDP figures, prompting a more cautious outlook among inves...
Invezz
China’s benchmark government bond yield fell to a nearly 22-year low with experts attributing the development to a shift in investor behaviour towards fixed-income products amid a fragile economic recovery. The onshore 10-year government yield slipped to 2.22%, the lowest since 2002. Yields on the 20- and 50- year bonds have been trading at their historic lows for months. What does the bond market’s performance showGovernment bond yields are critical indicators of economic confidence and investor sentiment. Despite recent upgrades to growth forecasts, the bond market’s performance suggests ong...
Invezz
The 10-year U.S. treasury bond yield tends to move inversely with the S&P 500The negative correlation started in 2022 and has accelerated as the S&P 500 hit new lows after the 10-year peaked earlierA reversal signal candle on the 10-year yield may signal a bottom in the S&P 500 with a one to two week heads upIt’s conventional knowledge that stocks and bonds tend to move inversely or have a negative correlation most of the time. When interest rates rise, stocks fall, bond yields rise, and bond prices fall. Interest rates haven’t been much of a factor for over a decade until inflation reared its...
ValueWalk
Dear fellow investors, “The stock market is there to serve you and not to instruct you.” –Warren Buffett. May 5th, 1997 at the Berkshire Hathaway Annual Shareholder Meeting What The Stock Or Bond Markets Are Telling UsThe future is always unknown. One of the most common fallacies that we’ve heard over the last two years is investors saying to us what the stock market or bond markets are telling us about the future. We find this interesting because it doesn’t tell you anything. As Buffett says, these market prices can serve you, but they can’t instruct you. We would like to share a couple of hi...
ValueWalk
In hisDaily Market Notes report to investors, while commenting on a recession brewing, Louis Navellier wrote: [soros] Q3 2021 hedge fund letters, conferences and more Someone needs to tell the bond market about the high inflation numbers. Stocks are acting like interest rates have spiked hard and that investors have recalculated stock valuations using much higher discount rates of future cash flows, which would punish all stocks, all else being equal, the higher the P/E the more the damage, but especially those companies with no current earnings. Tech StrugglesThe tech sector, which dominates ...
ValueWalk
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