The key risk faced by bond markets is a sudden fall in prices.
If the European economy continues to improve at the current pace, the QE program could be scaled down to 40.0 billion euros per month.
In this cycle of expansion after the great recession, the Fed has started the process of monetary tightening.
Since the beginning of the global financial recession, bond markets have remained subdued as interest rates in major economies remained close to zero.
The British pound (FXB) was one of the worst performers in the week ending August 18.
The US bond markets (BND) turned volatile (VXX) in the week ending August 18 but remained close to their August 11 close.
The US Dollar Index (UUP) managed to recover some of the losses it saw in the last few weeks.
In its June meeting, FOMC (Federal Open Market Committee) members detailed plans to shrink the $4.5 trillion balance sheet.
FOMC members noted that labor market conditions have continued to strengthen since their last meeting in June.
Members of the FOMC (Federal Open Market Committee) attributed the recent slowdown in inflation growth to idiosyncratic factors.
In his speech on August 10, New York Fed President William Dudley joined the group of FOMC members to ease concerns about slowing inflation (TIP).
The retail sales report for July was released by the United States Census Bureau on August 15. According to the report, US retail sales were $478.9 billion.
US bond markets (BND) rallied in the previous week as tensions between the US and North Korea escalated.
Bonds, especially U.S. Treasuries (GOVT), are considered one of the safest assets in which to park your funds in times of uncertainty.
For investors seeking income from municipal bond exposure, one of the most popular investment strategies employed by individual investors has been one of the least successful strategies—the bond ladder. It’s…
Greenspan cites rapid inflation growth as the reason for a bond market collapse. But the markets and Fed officials think otherwise.
Fundamentally, bonds (AGG) are a discount instrument and are generally never expected to be in a bubble. Let’s see why that’s the case.
In his interview on the Bloomberg channel on July 31, 2017, former Fed chair Alan Greenspan rang alarm bells about the bond market (BND) being in a bubble.
Alan Greenspan believes that interest rates in the United States and globally are too low and might have to be increased too quickly in the future.
The US Dollar Index started this week on a stable note. After pulling back on Wednesday, it’s trading with strength in the early hours on Thursday.