Bonds 04 (Jul 15 - Aug 17)

Re: Bonds 04 (Jul 15 - Dec 17)

Postby winston » Mon Aug 14, 2017 6:26 am

Treasuries tumble as war talk spikes

The bond bulls in the US$14 trillion (HK$109.2 trillion) Treasuries market didn't expect - or want - to be proven right in quite this manner.

Ramped-up bellicose rhetoric between US President Donald Trump and North Korean leader Kim Jong Un has stoked fears of imminent war, driving 10-year Treasury yields to the lowest level since June.

Unless the two adversaries tone it down, haven demand is likely to overwhelm traders this week, with few economic data releases significant enough to move markets.

Of course, it's not just escalating tension on the Korean peninsula that's pushed yields toward their lowest levels of the year. US inflation missed estimates yet again last week, adding to doubts about the likelihood of a third Federal Reserve rate hike in 2017.

Traders are pricing out that possibility. They'll get further insight into officials' thinking when the Fed releases minutes of its July meeting Wednesday.

Treasuries, the world's go-to safe haven asset, are riding a two-week winning streak. The 10-year yield, which stands at 2.19 percent, isn't far from the 2017 low of 2.1 percent set in June.

Source: BLOOMBERG
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Re: Bonds 04 (Jul 15 - Dec 17)

Postby winston » Mon Aug 21, 2017 9:48 am

Bonds: 2.197% versus 2.185%.

Up week for bonds, bouncing off the 50 day EMA to a higher recovery high.

Friday up but then faded to flat.

Still heading higher despite a supposedly more hawkish Fed and better economy.

White House turmoil? Geopolitical tensions? Sure, but the latter are not all the issues.

Source: Investment House
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