What's all this about bond yields & inflation?
Excerpt
Thirty-year Treasury yields slipped four basis points to 4.52 percent and the bond’s extra yield over two-year notes was near a record, indicating money managers are demanding compensation for the risk that inflation will accelerate.
‘Problem With the Dollar’
“The problem with the dollar is that despite the economic recovery, its housing market and employment remain very weak,” said Jane Foley, a senior foreign-exchange strategist at Rabobank International in London.
U.S. housing starts fell to 4.3 percent to a 529,000 annual rate in December, lower than the 550,000 annual rate predicted in a Bloomberg survey.
Thirty-year Treasury yields slipped four basis points to 4.52 percent and the bond’s extra yield over two-year notes was near a record, indicating money managers are demanding compensation for the risk that inflation will accelerate. The Federal Reserve purchased $7.7 billion in Treasuries due from December 2013 to January 2014. Volume in the Treasures market was the lowest in two weeks.
The Stoxx 600 slid 1.4 percent from yesterday’s highest close since September 2008. Kesa Electricals Plc, Europe’s third-largest electronics retailer, sank 9.8 percent after saying profit before tax will be at the lower end of analysts’ projections. Pearson Plc jumped 4.5 percent as the owner of the Financial Times raised its 2010 earnings forecast.
snip
read whole thing
http://noir.bloomberg.com/apps/news?pid=20601087&sid=aXaVjzqgm7P8&pos=2
Thirty-year Treasury yields slipped four basis points to 4.52 percent and the bond’s extra yield over two-year notes was near a record, indicating money managers are demanding compensation for the risk that inflation will accelerate.
‘Problem With the Dollar’
“The problem with the dollar is that despite the economic recovery, its housing market and employment remain very weak,” said Jane Foley, a senior foreign-exchange strategist at Rabobank International in London.
U.S. housing starts fell to 4.3 percent to a 529,000 annual rate in December, lower than the 550,000 annual rate predicted in a Bloomberg survey.
Thirty-year Treasury yields slipped four basis points to 4.52 percent and the bond’s extra yield over two-year notes was near a record, indicating money managers are demanding compensation for the risk that inflation will accelerate. The Federal Reserve purchased $7.7 billion in Treasuries due from December 2013 to January 2014. Volume in the Treasures market was the lowest in two weeks.
The Stoxx 600 slid 1.4 percent from yesterday’s highest close since September 2008. Kesa Electricals Plc, Europe’s third-largest electronics retailer, sank 9.8 percent after saying profit before tax will be at the lower end of analysts’ projections. Pearson Plc jumped 4.5 percent as the owner of the Financial Times raised its 2010 earnings forecast.
snip
read whole thing
http://noir.bloomberg.com/apps/news?pid=20601087&sid=aXaVjzqgm7P8&pos=2
Stocks, Dollar Fall as Housing Starts Slow; Goldman Sachs Drops
By Stephen Kirkland and Rita Nazareth
Jan. 19 (Bloomberg) -- U.S. stocks fell, sending the Standard & Poor’s 500 Index to its biggest drop in almost two months, and the dollar weakened as Goldman Sachs Group Inc.’s profit slid and housing starts trailed forecasts. China led emerging markets equities higher while Treasuries advanced.
The S&P 500 lost 1 percent to 1,281.92 at 4 p.m. in New York, its biggest drop since Nov. 23, as 430 of its companies declined. Goldman Sachs sank 4.7 percent to pace a decline in banks after profit slid by more than half as revenue from trading and investment banking declined. The Dollar Index dropped to the lowest level since November, while 10-year Treasury yields declined three basis points to 3.34 percent.
...snip
Jan. 19 (Bloomberg) -- U.S. stocks fell, sending the Standard & Poor’s 500 Index to its biggest drop in almost two months, and the dollar weakened as Goldman Sachs Group Inc.’s profit slid and housing starts trailed forecasts. China led emerging markets equities higher while Treasuries advanced.
The S&P 500 lost 1 percent to 1,281.92 at 4 p.m. in New York, its biggest drop since Nov. 23, as 430 of its companies declined. Goldman Sachs sank 4.7 percent to pace a decline in banks after profit slid by more than half as revenue from trading and investment banking declined. The Dollar Index dropped to the lowest level since November, while 10-year Treasury yields declined three basis points to 3.34 percent.
...snip
posted by Walk a Kb or Two in my cassins | 5:57 pm
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