US bond yields fall sharply. End of euphoria
The long-term segment of the yield curve just plummeted with interest rates on 10-year bonds dropping below 1.30% …
And 30-year yields drop towards 1.90% …
An immediate catalyst for the move is unclear, although Chicago Fed Chairman Evans commented on his disappointment that inflation expectations weren't higher (“the risk of upside inflation is not that strong. as I wish ") and" more persistent inflation wouldn't be bad. " In short, according to the FED, inflation would be too low and in any case it will be short-lived. As a result, interest rates plummeted.
Against this decline in yields, there was a very significant decline in the US stock market.
So inflation that does not rise and the stock market fall, mixed, bring rates to a very low level, practically zero. The economic slowdown is around the corner. the causes can be linked, for example, to the end of the euphoria over vaccines and to the data of the infections for the delta variant. The end of the joy brings new worries, depresses the markets and also the interests on safe assets.
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The article US stock yields fall sharply. End of the euphoria comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/rendimenti-dei-titoli-usa-in-forte-calo-fine-delleuforia/ on Fri, 16 Jul 2021 07:00:30 +0000.