Bonds

Bonds
Rising Interest Rates

Global Bonds Under Siege as Treasuries Selloff Spreads

(Bloomberg) — Global bond markets came under pressure Monday after Treasuries sold off on Friday on increased speculation of a March rate hike by the Federal Reserve. Germany’s 10-year borrowing rates jumped to within three basis points of turning positive for the first time in almost three years, while Australia’s benchmark yield climbed seven basis […]

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Bonds
Interest Rates

Bonds’ Steep Selloff Isn’t Reason to Worry. How to Keep Calm.

Treasury building in Washington, D.C. Erin Scott/Bloomberg There’s a well-known adage, often mistakenly described as a Chinese curse: “May you live in interesting times.” This certainty rings true for bond investors who, having witnessed a tumultuous 2021, saw a steep selloff in bonds in the first few days of January. While it is easy to […]

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Bond Yields
Bonds
US Treasuries

Treasuries Are a Losing Investment Compared With These Bonds

“Fallen angel” corporate bonds are less sensitive to interest-rate changes brought on by the Fed. Getty Images For those looking for a safe investment, Treasury bonds aren’t the right bet. Instead, Bank of America advises considering a class of corporate bonds with a particularly bright outlook.  Treasury bonds have had a rough ride as of […]

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Bond Yields
Bonds

Surging Bond Rates Threaten to Muzzle Dip-Buying Stock Bulls

(Bloomberg) — A valuation case that has fueled a near-tripling in the Nasdaq 100 Index is coming under increasing pressure, with surging interest rates threatening to dent equities’ there-is-no-alternative argument. While the stock-bond valuation picture still leans toward shares from a longer-term historical lens, it is currently being clouded by the biggest weekly run-up in […]

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Bonds
Cash
Ray Dalio

Ray Dalio Says Cash, Bonds ‘Stupid to Own’ Amid Money Printing

(Bloomberg) — Ray Dalio renewed his warning about holding cash and bonds on Tuesday amid the ongoing, pandemic-fueled increase in debt creation and monetization in the U.S. “This printing of money and buying of debt assets has driven interest rates so low that cash and bonds are stupid to own,” he wrote in a post […]

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Bond Traders
Bond Yields
Bonds

Bond Traders Stare at Worst Real Returns Since Volcker Era

(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 […]

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Bonds
Illiquidity
Treasury
US Treasuries

U.S. Treasurys market is ‘not well’ as ‘signs of illiquidity abound,’ B. of A. rates strategists say

Signs of trouble are cropping up in the world’s largest, most liquid government-securities market, B. of A. rates strategists say. Large moves on very low volumes of Treasury inflation-protected securities, or TIPS, breakevens, a gauge of U.S. inflation expectations, are among the indications that the rates market is unsettled, the strategists say. “Collapsed” depth in […]

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Bond Yields
Bonds
HyperInflation
Inflation
Interest Rates

U.S. 30-Year Yield Surges After Poor Auction in Wake of CPI

(Bloomberg) — Global bond yields are surging after a bigger-than-expected jump in U.S. inflation revived concerns that central banks will be forced to start raising interest rates sooner than traders anticipate. Treasuries tumbled Wednesday in an abrupt reversal for the world’s biggest bond market, where yields had declined after Federal Reserve Chair Jerome Powell last […]

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Bond Yields
Bonds
Interest Rates
Rising Interest Rates

The little-known type of bond that's paying 7.12% in interest right now

The personal finance community has been buzzing this week about a little-known type of government-backed savings bond paying as much as the stock market usually pays over the long-term: A mouth-watering 7.12% that’s pretty much as safe as anything out there. They’re called Series I savings bonds and the government sets the rate of interest […]

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Bonds

I Bond rates can be an inflation hedge: What are they and why should you buy some now?

As the cost of bacon and other goods sizzles, more people want to protect their savings from getting burned to a crisp by inflation. One simple move, which I wrote about this past summer as well, involves setting aside some money in inflation-protected savings bonds, known as I Bonds. You’re likely going to hear even […]

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Bond Traders
Bonds
Supply-Demand

Bond Traders Spy Opportunities in Big Supply-Demand Shift Ahead

(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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