Government Debt/Bond Markets

29Dec

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Money

2024 Could Be the Year of the Yen

The Japanese yen has been one of the worst performing currencies of the past couple of years. It could do better in 2024.The yen has lost around 20% against the dollar since the end of 2021, underperforming other major currencies. Japan’s central bank kept its ultralow interest rates while most of its peers have been raising rates aggressively. Higher yields outside of Japan have driven the currency lower and lower.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

22Dec

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Money

Waving a Red Flag at Bond Bulls

The drop in long-term rates might seem excessive, but as long as investors’ expectation of low inflation readings isn’t proven wrong, it could continue.

13Dec

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World

China Turns the Tables on Wall Street

Updated Dec. 13, 2023 12:53 am ETChina is upending how the international financial system handles debt crises in the developing world. Wall Street isn’t happy.Large bond fund managers cried foul last month when China blocked their deal to salvage investments in defaulted Zambian debt. The smackdown came just weeks after Chinese officials brokered a private debt restructuring with Sri Lanka, outmaneuvering Western governments that were trying to do the same.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

When Bond Yields Dropped, the Everything Rally Kicked Off

12Dec

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Money

When Bond Yields Dropped, the Everything Rally Kicked Off

Stocks, bonds, crypto and gold are surging, sparking worries of a fleeting sugar high.

Double Trouble: Investors Fight the Fed on Two Fronts

8Dec

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Money

Double Trouble: Investors Fight the Fed on Two Fronts

Updated Dec. 8, 2023 12:03 am ETInvestors are betting against the Fed—twice over. The first bet is the sudden turn from expecting the Federal Reserve to keep rates higher for longer to instead expecting rapid and deep cuts next year.The second bet is almost the exact opposite, that the Fed will have to keep rates much higher in the long run than it says it will. Treasury yields have come down, but at around 4.1% the 10-year yield remains more than 1.5 percentage points above the Fed’s forecast of long-run interest rates.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Rising Treasury Yields Pull Stocks Lower

4Dec

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Money

Rising Treasury Yields Pull Stocks Lower

Updated Dec. 4, 2023 5:30 pm ETStocks, bonds and precious metals retreated Monday, reversing course after markets last week extended a monthlong stretch of gains. Higher bond yields weighed on shares of large technology companies, pressuring the broader stock market. The tech-focused Nasdaq Composite lost 0.8%, and the benchmark S&P 500 dropped 0.5%. The Dow industrials slipped 0.1%, or 41 points, snapping a four-day win streak.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

4Dec

By adminNo Comments

World

Rising Treasury Yields Pull Stocks Lower

Stocks, bonds and precious metals retreated Monday, reversing course after markets last week extended a monthlong stretch of gains. Higher bond yields weighed on shares of large technology companies, pressuring the broader stock market. The tech-focused Nasdaq Composite lost 0.8%, and the benchmark S&P 500 dropped 0.5%. The Dow industrials slipped 0.1%, or 41 points, snapping a four-day win streak.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Wall Street Loves Washington’s New Debt Approach—for Now

19Nov

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Money

Wall Street Loves Washington’s New Debt Approach—for Now

Updated Nov. 16, 2023 4:04 pm ETSwelling deficits and weak investor appetite for long-term U.S. debt are pushing the Treasury Department to get more creative with how it borrows. Markets are thrilled—but the approach comes with risks. The Treasury has long embraced the mantra of “regular and predictable” debt sales to avoid creating market volatility as it finances the U.S. deficit. Recently, though, high interest rates have driven investors to eschew longer-term Treasurys. The government has had to adapt, cutting back this month on expected increases in long-term bonds and favoring more short-term debt.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

15Nov

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Money

Stocks, Bonds Soar After Inflation Data

Updated Nov. 14, 2023 6:29 pm ETAn autumn stock-market rally accelerated Tuesday after fresh data showed that inflation cooled more than expected, powering big gains across stocks and government bonds.Consumer prices were unchanged in October from the previous month and up 3.2% from a year ago, less than what economists surveyed by The Wall Street Journal had forecast. The figures helped reassure investors that the Federal Reserve is likely done raising rates and put a soft landing for the U.S. economy in view.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

14Nov

By adminNo Comments

World

Stocks, Bonds Soar After Inflation Data

Updated Nov. 14, 2023 6:29 pm ETAn autumn stock-market rally accelerated Tuesday after fresh data showed that inflation cooled more than expected, powering big gains across stocks and government bonds.Consumer prices were unchanged in October from the previous month and up 3.2% from a year ago, less than what economists surveyed by The Wall Street Journal had forecast. The figures helped reassure investors that the Federal Reserve is likely done raising rates and put a soft landing for the U.S. economy in view.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8