Can The U.S. 10-Year Treasury Yield Fall Further?

Can The U.S. 10-Year Treasury Yield Fall Further? Well, according to this chart, the U.S. 10-year treasury yield could fall further. The chart suggests that G4 central bank assets as percentage of GDP (1-year change) lead U.S. 10-year Treasury yield (1-year change) by one year. Image: Macrobond

The Amount of Outstanding Negative-Yielding Debt since 2009

The Amount of Outstanding Negative-Yielding Debt since 2009 Investors are paying governments for the privilege of holding their bonds and are losing so much money in real terms. Raising interest rates in the future could be painful for bond investors. Image: Jeroen Blokland, Bloomberg

Why Do Eurozone Bond Investors Accept Zero Long-Term Interest Rates?

Why Do Eurozone Bond Investors Accept Zero Long-Term Interest Rates? Because they have a deflationary view of the euro area economy. Now, investors are losing so much money just by holding German bonds in real terms (adjusted for inflation). Today, the Germany 10-Year bond yield hits 0% again. Keep in mind that raising interest rates in…

Valuation – World Technology Equities

Valuation – World Technology Equities Rising bond yields could hurt the tech sector, as it is very sensitive to higher yields. Image: BCA Research

U.S. Dollar and S&P 500 Equity Risk Premium

U.S. Dollar and S&P 500 Equity Risk Premium Higher bond yields reduce the S&P 500 equity risk premium, which weakens the U.S. dollar. Image: Morgan Stanley Research

Demographics and Interest Rates

Demographics and Interest Rates Interesting chart suggesting that demographics explain bond yields. Image: Fidelity Investments