Stock chart patterns and technical analysis (TA) explained simply. Disclaimer: This blog and all its contents are for educational and entertainment purposes only. Do not trade or invest based on any information seen on this blog. Please read Terms of Service. The K E Stone blog sites (Keybot the Quant) are blacklisted by Google, so enjoy the ad-free experience, and only use the Donate button when supporting the sites.
Pages
▼
Thursday, May 16, 2019
UST2Y 2-Year and UST10Y 10-Year Treasury Yields Weekly Charts; US Treasury Yields Drop to More Than 1-Year Lows
US Treasury and other global yields are dropping like rocks this week as investors seek perceived safe havens. The Federal Reserve will likely be cutting rates before they hike again due to the US economy losing gusto. As of Thursday morning, 5/16/19, the 2-year yield drops to 2.16% not seen since February 2018.
The 5-year yield is 2.14%; 10-year 2.36%; 30-year 2.81%. The 10-year is at lows from late 2017. The 2-10 spread is 20.3 basis points steepening away from an inversion. You can see the 2's-5's are inverted by 2 bips. The 5-30 spread is 67 bips.
The German 10-year bund yield goes negative below -0.11% testing record lows from 2016. The US-Germany 10-year yield spread is 247 bips. Global investors are willing to pay Germany for the privilege of parking their money there. The central bankers have made a mess of the world although they did succeed in making the wealthy class, their master's, filthy rich.
Bonds are bot (price higher yield lower) collapsing yields this week starting with the weak China data. Mix in a helping of India election turmoil, stir in some weak US economic data and voila, the recipe produces lower global yields. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.