(Bloomberg) — In times of Treasury turmoil, the biggest investor outside American soil has historically lent a helping hand. Not this time round. Japanese institutional managers — known for their legendary U.S. debt buying sprees in recent decades — are now fueling the great bond selloff just as the Federal Reserve pares its $9 trillion […]
Read More(Bloomberg) — Traders of U.S. government debt were dealt a stern reminder last week not to sleep on a market that’s been headed in one direction for a long time. Yields had risen to the highest levels in years in anticipation of more Federal Reserve interest-rate hikes and the central bank beginning to shed Treasury […]
Read More(Bloomberg) — Brazilian traders know inflation. After decades of dealing with wild bouts of it, they consider themselves experts on the topic. Their American counterparts, they say, got complacent. Years of subdued inflation in the U.S. have lulled them into a false sense of security, as the Brazilians see it. This in turn, the argument […]
Read More(Bloomberg) — Defying their stock-market counterparts, Treasury traders aren’t buying Jerome Powell’s upbeat pronouncements on growth. In fact, in the aftermath of Wednesday’s policy decision, one bond-market indicator of economic hardship is flashing red for the first time since the darkest days of the pandemic. After the Federal Reserve raised interest rates and signaled hikes […]
Read More(Bloomberg) — Bond traders are virtually certain the Federal Reserve will raise interest rates by a quarter percentage point on Wednesday. What they’re watching for is where the central bank is heading after that. Two-year Treasury yields, which are highly sensitive to monetary policy changes, have already climbed to the highest since September 2019 with […]
Read More(Bloomberg) — A Morgan Stanley trader is leaving the firm after racking up tens of millions of dollars in losses as a bout of market turmoil makes and breaks trading books across Wall Street. Hamza El Hassani, who traded dividends in the New York-based bank’s equities division, will be departing after transactions he oversaw went […]
Read More(Bloomberg) — After a tumultuous week of big yield swings and heightened volatility in the U.S. Treasury market, investors are bracing for another hot inflation report, while the war in Ukraine increasingly casts a pall over Europe and the global economy. Russia’s Feb. 24 invasion of Ukraine began to rewrite the script for U.S. bond […]
Read More(Bloomberg) — Treasury investors are losing more money than they have in four decades, once inflation is taken into account. And if markets are right, they’re unlikely to come out ahead for years. The federal government’s debt has already lost about 2% outright over the past year as the Federal Reserve started removing pandemic-era stimulus […]
Read More(Bloomberg) — U.S. Treasuries are on the cusp of a major shift in the supply-demand dynamic that’s shaped the market for more than a year, potentially heralding opportunities for traders lamenting an extended stretch of limited volatility. First, supply: Even if Congress passes infrastructure spending, Treasury auctions have grown bigger than they need to be, […]
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