US Treasuries

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US Treasuries

What Happened to Silicon Valley Bank? How To Avoid Similar Stocks

Silicon Valley Bank experienced unprecedented growth from its tech startup clientele in 2020 and 2021, but was ultimately brought down by a one-two punch: their exclusive exposure to riskier investments combined with the regulations enacted post 2008. This forced them to heavily invest customers’ deposits into U.S Treasuries which created an unsustainable situation as volatile […]

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US Treasuries

Treasuries Tumble in Longest Slump Since 1984 on Hawkish Fed

(Bloomberg) — US Treasuries have entered the longest sustained slump in 38 years, as policy makers signal their determination to keep raising rates until they are sure inflation is under control. The yield on benchmark 10-year notes jumped 23 basis points this week to 4.25% on Friday, heading for a 12-week streak of increases that […]

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US Treasuries

Forget the 1970s — this market is drawing comparisons to the 1870s

The current high inflation environment is often compared to the 1970s. But perhaps a more apt comparison would be to the 1870s. According to Bank of America, government bonds are on track for their worst year since 1865, the year the U.S. Civil War ended. Meanwhile, the stock market, when adjusted for inflation, is on […]

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US Treasuries

Treasuries Slide on Renewed Inflation Fears After May Rally

(Bloomberg) — Treasuries dropped across the curve as higher oil prices added to inflation concerns, and a Federal Reserve official backed additional 50 basis-point rate hikes. US five-year yields jumped as much as 12 basis points to 2.84%, while benchmark 10-year yields climbed 11 basis points to 2.85%. Treasuries also played catch up to other […]

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Wall Street Is Buying Treasuries Again in Bet Worst Is Over

(Bloomberg) — Across Wall Street, from BlackRock Inc. to T. Rowe Price Group Inc., some veterans of the bond market’s booms and busts are seeing signs that it’s safe to start buying again. Few are eager to call the bottom just yet, not with inflation still surging at a four-decade high and the Federal Reserve […]

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Treasury Five-Year Yield Climbs to Highest Since September 2008

(Bloomberg) — U.S. Treasuries tumbled Monday, driving the yield on five-year notes to the highest level since September 2008 amid speculation persistent inflation will prompt the Federal Reserve to tighten policy more aggressively. The yield jumped as much as three basis points to 3.11%, extending an advance that has seen the rate more than double […]

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US Treasuries

Treasury Cuts Quarterly Debt Sale, May Do So Again Even With Fed QT

(Bloomberg) — The U.S. Treasury trimmed its quarterly sale of longer-term debt for a third straight time, and unexpectedly advised that it may make further reductions, citing “strong” federal tax revenues. Dealers had widely expected the reduction to next week’s sale of notes and bonds, but viewed it as likely to be the last cutback […]

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US Treasuries

U.S. Treasury Now Sees $26 Billion Paydown in Debt This Quarter

(Bloomberg) — The U.S. Treasury now anticipates a paydown in government debt this quarter, a turnaround after previously estimating net borrowing during the period, amid a surge in tax revenue. The Treasury’s new projections, released in Washington Monday, show debt managers now expect to pay down $26 billion of debt in the April-through-June period. That […]

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Biggest Treasury Buyer Outside U.S. Quietly Offloads Billions

(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 […]

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US Treasuries

Treasury Yields Surge as Fed Traders Price In Even More Hikes

(Bloomberg) — Swaps traders priced in a full two percentage points of additional Federal Reserve interest-rate hikes for 2022 as Treasury yields surged anew on Friday, led by the short end of the curve. The moves came amid developments in Russia’s invasion of Ukraine and following more hawkish policy predictions by one of Wall Street’s […]

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This Is Now The Worst Drawdown on Record for Global Fixed Income

(Bloomberg) — Global bond markets have suffered unprecedented losses since peaking last year, as central banks including the Federal Reserve look to tighten policy to combat surging inflation. The Bloomberg Global Aggregate Index, a benchmark for government and corporate debt total returns, has fallen 11% from a high in January 2021. That’s the biggest decline […]

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US Treasuries

U.S. Treasury Yields Surge to the Highest Levels Since 2019

(Bloomberg) –Treasuries slumped, sending the two-, five- and 10-year yields to the highest levels since May 2019, as policy makers in the U.S. and Europe cranked up expectations for higher borrowing costs in the face of mounting inflationary pressures. The two-year rate — more sensitive to Fed policy changes than longer-dated ones — rose 10 […]

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Treasuries Rout Extends With Fed Hike Looming, Five-Year Tops 2%

(Bloomberg) — Treasuries fell Monday to extend this month’s rout in global developed-market bonds as investors anticipate the inflationary impacts of the war in Ukraine will spur aggressive monetary tightening. Five-year yields rose six basis points to surpass 2% for the first time since May 2019, while 10-year yields climbed four basis points to 2.04%. […]

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Bond Traders Primed for Wild Swings With Inflation, War in Focus

(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 […]

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Treasuries Haven’t Started a Year This Badly in Four Decades

(Bloomberg) — Six weeks into 2022 and it’s shaping up to be a grim year for fixed-income investors facing rising interest rates around the world. With the Federal Reserve preparing to hike rates next month after a bigger-than-expected jump in U.S. consumer prices, Treasuries have endured their worst start to a year in more than […]

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