The week ahead: Bond yields and earnings reports

like stocks. As we have mentioned in previous notes, the correlation between the S&P 500 and US Treasuries is at a record high. This means that stocks and bond prices are both tanking at the same time. For reference, the correlation is at its highest level since the late 1990s, and this may get even stronger in the coming weeks, if bond yields continue to rise.

Since short and long dated bond yields tend to peak together, then we could be close to the peak for longer dated bond yields, and we may see some downward pressure on 10 year yields emerging this week. Added to this, some Fed members have suggested that a rising term premium could limit further interest rate hikes from the Federal Reserve, so a rising term premium could be just the tonic to help ease further bond yield increases.

México Últimas Noticias, México Titulares

Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.

Wall Street week ahead: Amazon, Microsoft, Boeing earnings and rising bond yieldsInvestors are staring down a big week for corporate earnings with reports due from Amazon, Microsoft and Google, as well as Ford and GM with the UAW strike against the automakers dragging on.
Fuente: FoxBusiness - 🏆 458. / 53 Leer más »

Fed says bond market's term premium is the reason behind rise in Treasury yields. Why investors should take it with a dose of caution.Bond market’s term premium appears to be the primary culprit for rising Treasury yields. What it is and why the concept is challenging.
Fuente: MarketWatch - 🏆 3. / 97 Leer más »