It is unclear as to whether this is supportive of the broader stock market. Have yields jumped because of excessive supply? Or are increased yields indication of a broader appetite for risk (and yield)?
Thursday, January 29, 2009
10 year yields jump
The Fed announced that they were "prepared to buy Treasuries" and it appears the market wants to test how serious the Fed is. In the words of Across the Curve, "tarders are now enganged in a game of financial chicken with Federal Reserve as traders attempt to force the Fed's hand." And with that, 10 year yield jumped today.
It is unclear as to whether this is supportive of the broader stock market. Have yields jumped because of excessive supply? Or are increased yields indication of a broader appetite for risk (and yield)?
It is unclear as to whether this is supportive of the broader stock market. Have yields jumped because of excessive supply? Or are increased yields indication of a broader appetite for risk (and yield)?
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment