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16 June 2021
08:40 hour

Market Extra: U.S. Treasury yields fall despite higher inflation: Here are some reasons why.

Market Watch

10/06/2021 - 22:11

Inflation and bonds don't mix. So it is curious that a surge in the rate of inflation in 2021, accelerating at its fastest pace since the 2008 financial crisis, is being met with bond buying rather than selling on Wall Street.


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Related headlines:

  1. Market Extra: Is inflation eating up all the interest you’re earning on 10-year Treasury notes? (11/06/2021 - Market Watch)
    Short positioning may be masking some concerns by investors in the bond market about inflation, as yields dip even as cost of living in America keeps rising.
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  2. Market Extra: Is inflation eating up all the interest you’re earning on 10-year Treasury notes? (11/06/2021 - Market Watch)
    Short positioning may be masking some concerns by investors in the bond market about inflation, as yields dip even as cost of living in America keeps rising.
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  3. Market Extra: 10-year Treasury yield lingers below 1.60% to begin week (19/04/2021 - Market Watch)
    U.S. Treasury yields tick higher in early Monday trade as investors gauge the sustainability of last week's bond market rally that took the 10-year Treasury rate below 1.60%.
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  4. Market Extra: 10-year Treasury yield lingers below 1.60% to begin week (19/04/2021 - Market Watch)
    U.S. Treasury yields tick higher in early Monday trade as investors gauge the sustainability of last week's bond market rally that took the 10-year Treasury rate below 1.60%.
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  5. Bond Report: U.S. Treasury yields inch higher before March inflation data (13/04/2021 - Market Watch)
    U.S. Treasury yields were tilted higher in early Tuesday trade before the widely awaited consumer price index data for March that could add fuel to bond investors' fears of a surge in inflation.
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  6. NASDAQ is far from correction. Prepare for treasury yields huge rise. (12/05/2021 - Reddit Stocks)
    We all were hoping to have less than 2% inflation this year. But 4.2% HAPPENED IN APRIL. WAY TOO HIGH!!! High inflation will means that treasury yields will rise itself much higher. And probably FED is forced to rise interest rates to stop too high inflation or else everyone loses their money. What higher treasury yields and interest rate means? It means that tech stock become less value. And yes, tech stock will drop much more than it was on 8 may aka before NASDAQ correction. And i don't think we see recovery anytime soon.   submitted by   /u/MAARJA007 [link]   [comments]
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  7. Bond Report: Treasury yields fall Friday, end lower for week and month despite inflation worries (29/05/2021 - Market Watch)
    Yields for U.S. government debt edged lower Friday, as investors pored over another reading of inflation, affirming that price pressures are gathering, though market participants view them as transitory.
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  8. Bond Report: 10-year U.S. Treasury yield approaches key 1.2% level before January inflation numbers (10/02/2021 - Market Watch)
    U.S. Treasury yields edged higher early Wednesday before the release of the U.S. consumer inflation data for January.
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  9. Market Extra: 10-year Treasury yield holds below 1.50% as bond market selloff cools (01/03/2021 - Market Watch)
    U.S. Treasury yields are mostly lower on early Monday's trade as the bond market looks to find stability after last week's frenzied moves that saw the benchmark 10-year Treasury surge as high as 1.60%.
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  10. Market Extra: 10-year Treasury yield holds below 1.50% as bond market selloff cools (01/03/2021 - Market Watch)
    U.S. Treasury yields are mostly lower on early Monday's trade as the bond market looks to find stability after last week's frenzied moves that saw the benchmark 10-year Treasury surge as high as 1.60%.
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  11. Market Extra: Dollar bottom or bear-market bounce? Here’s what traders are watching (08/03/2021 - Market Watch)
    The all-important U.S. dollar is pushing higher against major rivals as Treasury yields rise.
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  12. Bond Report: Treasury yields hold steady with Fed meeting set to kick off (15/06/2021 - Market Watch)
    Treasury yields were seeing subdued trading on Tuesday, as fixed-income investors awaited a fresh round of data on retail sales and inflation and the start of the Federal Open Market Committee's two-day policy meeting, which could provide the clearest picture of the central bank's view on the economy and inflation outlook.
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  13. Bond Report: U.S. Treasury yields rise before inflation data, debt auction (10/03/2021 - Market Watch)
    U.S. Treasury yields inch higher on Wednesday before a consumer price index data and an auction for benchmark 10-year notes, both of which could influence trading in government paper.
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  14. Bond Report: Treasury yields fall as market readies for Powell testimony, debt auctions (23/03/2021 - Market Watch)
    Treasury yields extended a pullback to a second day Tuesday morning ahead of testimony from Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen, who are due to make their first of two days of talks about the U.S. economic recovery from COVID in front of congressional lawmakers.
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  15. Bond Report: Treasury yields fall as market readies for Powell testimony, debt auctions (23/03/2021 - Market Watch)
    Treasury yields extended a pullback to a second day Tuesday morning ahead of testimony from Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen, who are due to make their first of two days of talks about the U.S. economic recovery from COVID in front of congressional lawmakers.
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  16. Bond Report: Treasury yields hold ground as U.S. retail sales surge (17/02/2021 - Market Watch)
    Treasury yields were little changed early Wednesday, after rising sharply in the past few days, despite a report showing U.S. retail sales soared in January, after a fall in December, heightening worries inflation pressures may start to heat up this year.
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  17. 10 year treasury yield and inflation, what else holind the market back? (16/04/2021 - Reddit Stocks)
    In last February, the market crushed (we can argue about market correction or whatever you call it) because of two things, the 10 year treasury yield and inflation were rising. In last few weeks, the 10-year yields have been decliing and today it hit 1.57. On the others hand, we haven't seen any notable evidence of inflation becoming a wild big issue. I wonder what else is holinding the growth stock back?   submitted by   /u/MangoExternal [link]   [comments]
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  18. Market Extra: 3 reasons the rise in bond yields is gaining steam and rattling the stock market (25/02/2021 - Market Watch)
    Inflation fears, an inactive Federal Reserve and forced selling are cited as some of the forces accelerating the bond yield surge this week.
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  19. Global fund managers warn of stock market correction if yields surge to 2%; covid-19 risk no more (22/03/2021 - Financial Express)
    Currently, the 10-year Treasury yield is sitting near 1.6%, down after having breached 1.7% last week. Yields have moved higher as inflation worries mount and global economic recovery takes shape.
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  20. Bond Report: U.S. Treasury yields edge higher as ECB stays on course (22/04/2021 - Market Watch)
    U.S. Treasury yields are tilting higher on early Thursday's trade as the European Central Bank left policy unchanged.
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  21. Market Extra: Treasury auctions this week may add kindling to bond-market turbulence (09/03/2021 - Market Watch)
    A flood of long-dated Treasury issuance set for this week could spark a further selloff in government debt, adding to a rapid run-up in yields this year.
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  22. Market Extra: Treasury auctions this week may add kindling to bond-market turbulence (09/03/2021 - Market Watch)
    A flood of long-dated Treasury issuance set for this week could spark a further selloff in government debt, adding to a rapid run-up in yields this year.
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  23. Bond Report: U.S. Treasury yields follow European government bonds higher after hopes for ECB action wane (03/03/2021 - Market Watch)
    U.S. Treasury yields shift higher on Wednesday after news reports said European Central Bank policymakers were unwilling to intervene to keep bond yields from rising.
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  24. Bond Report: U.S. Treasury yields hold ground even as inflation picks up (30/04/2021 - Market Watch)
    U.S. Treasury yields hold their ground on early Friday's trade as investors look past consumption and inflation data that confirmed the U.S. economy's strength last month.
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  25. Bond Report: U.S. Treasury yields tick higher before debt sale (21/04/2021 - Market Watch)
    U.S. Treasury yields edged higher on early Wednesday's trade, but largely clung to the floor of its recent trading range ahead of an auction for 20-year government bonds.
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  26. Bond Report: U.S. Treasury yields hold steady ahead of inflation data (12/05/2021 - Market Watch)
    Treasury yields hold steady Wednesday morning, as fixed-income investors awaited a reading on the U.S. consumer price index due at 8:30 a.m. Eastern that may show a rise in inflation as the economy recovers from the COVID pandemic.
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  27. Bond Report: U.S. Treasury yields edge up from 3 month lows ahead of May inflation data (10/06/2021 - Market Watch)
    U.S. government bond yields edge higher Thursday, rising from their lowest levels in about three months, ahead of a closely watched reading of May inflation at 8: 30 a.m. Eastern Time that could serve as an inflection point for Treasurys.
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  28. The Tell: 3 reasons why the stock market might be able to survive rising bond yields in 2021 (23/02/2021 - Market Watch)
    Rising Treasury yields are contributing to a selloff by the stock market's pandemic highfliers, but probably won't be enough to spoil the appeal of stocks over bonds, one analyst says.
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  29. The Tell: 3 reasons why the stock market might be able to survive rising bond yields in 2021 (23/02/2021 - Market Watch)
    Rising Treasury yields are contributing to a selloff by the stock market's pandemic highfliers, but probably won't be enough to spoil the appeal of stocks over bonds, one analyst says.
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  30. Treasury Yields Suggest A Top Is Near (08/02/2021 - INO.com)
    Historically, whenever the Treasury Yields fall below zero, then recover back above zero, the US/Global markets reach some peak in price levels within 3 to 8+ months. My research team and I believe the actions of the global markets may be setting up for a future peak in price levels sometime in the next 6 […] The post Treasury Yields Suggest A Top Is Near appeared first on INO.com Trader's Blog.
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  31. Bond Report: U.S. Treasury yields edge higher to kick off monthly trade (03/05/2021 - Market Watch)
    U.S. Treasury yields are tilting higher in early Monday's trade as investors eye the all-important jobs report at the end of the week.
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  32. Bond Report: 10-year Treasury yield adds to slide ahead of data (25/03/2021 - Market Watch)
    Long-dated Treasury yields on Thursday are set to fall for a fourth consecutive day, with the 10-year Treasury rate hanging around its lowest level in over a week. Investors have attributed the price gains in yields partly to the concerns about Europe's recovery from the COVID-19 pandemic, which has fueled buying in U.S. government debt.
    [visit article]
  33. Bond Report: U.S. Treasury yields climb on economic optimism before GDP data (29/04/2021 - Market Watch)
    U.S. Treasury yields were trading higher in early Thursday trade as investors grew more positive about the economy's trajectory.
    [visit article]
  34. Why do bond yields rising matter? (26/02/2021 - Reddit Stock Market)
    Why does bond yield rising matter? I’ve read that it’s because of expectations of inflation and the increase of interest rates to combat said inflation. Higher interest rates hurting the stock market makes sense. Bond yields going up in anticipation of inflation makes sense as people don’t want to to buy bonds when there is high inflation, which increases yield prices But does bond yield prices DIRECTLY affect the stock market? Or is it just that as expectations of inflation increase, bond yields go up and the stock market is also hurt, tho not by bond yields going up. So is the real problem the expectations of inflation and ensuing increase of interest rates and not the bond yields going up?   submitted by   /u/Django_lover [link]   [comments]
    [visit article]
  35. Bond yield relationship to stock price in current market (01/03/2021 - Reddit Stocks)
    I am a bit confused about what is going on in the markets right now. To my understanding, rapid increases in Treasury yields have prompted equities selloffs. However, bond yields only go up when prices go down, correct? And prices go down when people are selling bonds faster than they are buying them. It seems to me that the only reason for a selloff would be optimism in the future economy and rising inflation expectations. But if people are optimistic and selling bonds, why are equity prices decreasing? Surely the same people who sold the bonds and are optimistic would put money into equity markets, leading to higher prices? I understand that higher bond yields lead other investors to think about moving capital there, but how can bond yields go up and stock prices go down at the same time? Wouldn't the demand for bonds quickly cap the rise in yields (and lead to yields falling again)?   submitted by   /u/SaitosElephant [link]   [comments]
    [visit article]
  36. Bond Report: U.S. Treasury yields edge higher as Fed speakers come into focus (14/04/2021 - Market Watch)
    U.S. Treasury yields are seeing a modest bounce on early Wednesday's trade as speeches from senior Federal Reserve officials draw attention from investors.
    [visit article]
  37. Market Extra: Here are parts of the market most vulnerable to a bond-market ‘taper tantrum’ (22/02/2021 - Market Watch)
    Rising Treasury yields and emboldened bond bears are prompting investors to reach out for historical playbooks.
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  38. Bond Report: 10-year Treasury yield falls below 1.50% on weak U.S. jobs report, then bounces back (07/05/2021 - Market Watch)
    U.S. Treasury yields fall below 1.50% Friday, for the first time since early March, after a much weaker-than-expected monthly U.S. employment report, but then yields completely retrace their drop by the end of the session.
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  39. Market Extra: Here’s when the bond market selloff turns into a problem for the stock market (17/02/2021 - Market Watch)
    Bond investors have reached a consensus on an accelerating surge in Treasury yields: it isn't the level that matters, but the pace of the move.
    [visit article]
  40. Market Extra: Here’s when the bond market selloff turns into a problem for the stock market (17/02/2021 - Market Watch)
    Bond investors have reached a consensus on an accelerating surge in Treasury yields: it isn't the level that matters, but the pace of the move.
    [visit article]
  41. Bond Report: U.S. Treasury yields hold steady before jobless claims (06/05/2021 - Market Watch)
    U.S. Treasury yields lacked direction in early Thursday's trade before an indicator of the labor market's health was due in the morning.
    [visit article]
  42. What causes 30 year US Treasury yield to rise? (28/04/2021 - Reddit Stocks)
    I researched on the web and it seems bond yields fall if their prices rise and vice versa. It makes total sense to me. Now what is causing 30 year US treasury yield to rise? https://www.google.com/finance/quote/TYX:INDEXCBOE Is it because 30 years US treasury bills are issued at lower price? Does that mean only Federal Reserve's actions affect the bond yields?   submitted by   /u/FitSkirtShirt [link]   [comments]
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  43. Bond Report: U.S. Treasury yields tumble as global markets steady (09/03/2021 - Market Watch)
    U.S. Treasury yields slide on Tuesday as global equities attempt to stabilize after several days of continuous selling, inspired by fears that higher bond yields could weigh on global markets trading on stretched valuations.
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  44. Bond Report: U.S. Treasury yields tick lower ahead of this week’s Fed meeting (15/03/2021 - Market Watch)
    U.S. Treasury yields fall on early Monday's trade as investors gear up for this week's Federal Reserve meeting that could see bond traders pitted against the U.S. central bank.
    [visit article]
  45. Bond Report: 10-year Treasury yield rises to 1.57%, trimming sizable weekly slide (16/04/2021 - Market Watch)
    Long-dated U.S. government debt Friday morning comes under some selling pressure, pushing prices lower and yields higher, but Treasury yields remain firmly down for the week, with fixed-income experts attributing some of the retrenchment in yields to hedge fund short covering and concerns about tensions between Russia and the U.S.
    [visit article]
  46. Bond Report: 10-year Treasury yield rises to 1.57%, trimming sizable weekly slide (16/04/2021 - Market Watch)
    Long-dated U.S. government debt Friday morning comes under some selling pressure, pushing prices lower and yields higher, but Treasury yields remain firmly down for the week, with fixed-income experts attributing some of the retrenchment in yields to hedge fund short covering and concerns about tensions between Russia and the U.S.
    [visit article]
  47. S&P 500 FUNDAMENTAL FORECAST: NEUTRAL (28/02/2021 - Reddit Stock Market)
    The S&P 500 index pulled back sharply towards the end of last week as rising Treasury yields triggered broad profit-taking activity in equities. The tech sector was among the hardest hit. The US 10-year treasury yield climbed more than 200% from an August low of 0.508% to a recent high of 1.600% on the back of rising reflationary expectations. Higher Treasury yields make stocks less appealing as compared to government bonds, as the latter appear to be offering better returns considering a risk-adjusted basis. The recent selloff may again prove to be another healthy correction along the stock market’s upward trajectory, as the fundamental picture remains largely supportive for a long-term bull run. President Joe Biden’s US$ 1.9 trillion Covid relief aid is around the corner, and a new multitrillion infrastructure bill is likely to be revealed in March. Aggressive fiscal spending points to rising reflation hopes, which inevitably led longer-dated Treasury yields higher as a result.   submitted by   /u/TommyWoodds [link]   [comments]
    [visit article]
  48. What are the boldest plays I can make if I think inflation will be over consensus? (05/06/2021 - Reddit Stocks)
    I believe inflation is going to be much larger than the consensus, and I want to have my big short moment. For those of you that don't believe inflation will be an issue, I respect your opinion and understand your points, but I don't want to turn this thread into a debate about how bad inflation will or won't be. Please don't bother arguing with me about inflation. I want people to share with me what are the boldest plays I can make if I think inflation will be way over consensus opinion. A few things I have come up with. TTT - a triple leveraged inverse of the 20 yr US treasury. Burry had a position (no one know if he still does) of a double leveraged similar position. Shorting stocks I think would fall the furthest in the event of a market crash caused by higher interest rates caused by trying to reel in inflation. Tesla comes to mind. So does GME. But shorting meme stocks I think is maybe too dangerous, but it could be lucrative too. What ideas do you have for me?   submitted by   /u/Zestyclose_Ad_1566 [link]   [comments]
    [visit article]
  49. Confused, Why does the NASDAQ go down when the 10 year treasury yield goes up? (12/03/2021 - Reddit Stocks)
    I'm confused as to why the NASDAQ go down when the 10 year treasury yield goes up. I thought it was disposed to be a good thing. According to Investopedia they say: Why Is the 10-Year Treasury Yield So Important? The importance of the 10-year Treasury bond yield goes beyond just understanding the return on investment for the security. The 10-year is used as a proxy for many other important financial matters, such as mortgage rates. This bond also tends to signal investor confidence. The U.S Treasury sells bonds via auction and yields are set through a bidding process. When confidence is high, prices for the 10-year drops and yields rise. This is because investors feel they can find higher returning investments elsewhere and do not feel they need to play it safe. But when confidence is low, bond prices rise and yields fall, as there is more demand for this safe investment. This confidence factor is also felt outside of the U.S. The geopolitical situations of other countries can impact U.S. government bond prices, as the U.S. is seen as safe haven for capital. This can push up prices of U.S. government bonds as demand increases, thus lowering yields. ​ Can some one please explain this to me in simple terms? I'm don't know much about bonds.   submitted by   /u/dustin4you [link]   [comments]
    [visit article]

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