Domestic, Macro

Bond Yields are Explaining the Market | Domestic

Bond Yields are Explaining the Market The market has been pretty unpredictable recently but if we are to take a look at bond yields, it can help us investors know what might happen in the market. The treasury note has decreased from 1.9% to 0.7% year to date. This could be why the markets have done well recently too. Stock price estimates are formed from formulas containing yields, and with lower yields it can help pull down discount rates. This can make future earnings more valuable, althou

Bonds, Macro

Macro | Recession Signals? | Aug 19th-25th

Yield Inversion - Early Recession signal Yield curves, interest, bonds, and the ever-going fight between the FED and President Trump have all been major focal points in 2019. Even though it might be sexier discussing high yield equities, it is important to talk about what happened last week. On August 14th, the 10-year Treasury bond briefly dropped below the 2-year treasury bond. This phenomenon is known as a yield curve inversion (See picture on the right). In normal market conditions, investor