The bond market hasn’t been this out of whack since the tech bubble. Here's why investors are going to 'extreme' lengths to make money.

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 57 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 26%
  • Publisher: 51%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

Investors are demanding higher yields for near-term bonds, relative to their longer-term counterparts, which reflects growing uncertainty.

's latest inversion. The presence of this triple-headed monster goes a long way towards explaining why investors are so desperate for yield in the near term.

Tit-for-tat tariffs between the US and its trading partners will continue to suppress earnings and economic output, putting downward pressure on an already slowing global economy. These tariffs don't pay for themselves, so the cost will either be passed down to the end consumer or absorbed by the supplier or initial buyer, depending on the nature of the levy.that hampers growth.

Meanwhile, the yield curve comparing 2- and 10-year Treasurys is the go-to recession indicator for money managers, as inversions have preceded every US contraction on record. JPMorgan perfectly summed up the overarching narrative: This sentiment shift has led directly to open interest across rate futures — or the number of contracts outstanding — spiking as investors seek to eke out every possible basis point in an already-suppressed yield enviroment.Global negative-yielding debt — which essentially means issuers are getting paid to borrow — now encompasses more than $11 trillion dollars, accounting for more than 20% of the investment-grade market, leaving market participants with fewer, riskier options for returns.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

There are too many multimillion-dollar mansions for sale in Los Angeles, and real-estate agents are going to extreme lengths to get them off the marketLos Angeles has too many megamansions and not enough buyers. Real-estate agents are trying to sell them with parties, gimmicks, and price cuts.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Goldman's portfolio of investors' favorite stocks is crushing the market, returning 16% this yearWhile most of the stock market is in turbulence amid the trade chaos, Goldman Sachs has a portfolio that's crushing the market. Even after today? Should update this daily, especially after today with this $GOOGL drop.
Source: CNBC - 🏆 12. / 72 Read more »

The government is threatening big tech — and the market just took noticeApple, Google, Facebook and Amazon are facing potential regulatory scrutiny and investors are paying close attention. these r some of the dirtiest companies on planet run by far left radicals pushing their sick and twisted perverted progressive world view on society and limiting and destroying those who they dont agree with! break em up and fine them a massive sum $$$$ JackPosobiec Good good good good news.
Source: CNBC - 🏆 12. / 72 Read more »

Markets Right Now: Socks rise as tech stocks recoverMARKETS: Stocks are rising Tuesday as technology companies recover from steep losses a day before. How is amazon a monopoly when they compete with Walmart target etc. wait until Trump opens his mouth.... give it a day or two The government feeks its power loss to the social media by billions of people following. So, regulate to control the social media like youtube, fb, etc. Gov wants to monopolise its fake and deceiving news to drive the nationalism for its regime like the communists or nazis.
Source: ABC - 🏆 471. / 51 Read more »