Wild Treasuries Swings Just Starting as Bond Traders Buckle Up

Wild Treasuries Swings Just Starting as Bond Traders Buckle Up

A surprisingly strong US economy and mixed signals from the Federal Reserve have fueled some of the wildest swings in Treasuries in recent memory. Dubbed the “world’s safest asset,” Treasuries have proven anything but recently as dramatic moves in yields become an almost daily occurrence. Just this week, the rate on the 10-year swung in a range of almost 40 basis points, buffeted by crosscurrents including resilient retail sales and jobless figures, a bevy of comments from Fed officials and rising demand for haven assets amid concerns of an escalating conflict in the Middle East. Market watchers predict sustained volatility due to economic factors and geopolitical tensions. Treasuries, considered the world’s safest asset, have been experiencing dramatic moves in yields. The Fed’s struggle to indicate a clear vision for interest-rate policy contributes to uncertainty. Swings in long-term rates are surpassing those in equities, causing concerns for investors. Geopolitical factors, including conflicts in the Middle East, and a surge in debt supply are further impacting market instability.

Tags: , , , , , , ,

TIS Staff

wp_ghjkasd_staff

Leave a Reply

Your email address will not be published. Required fields are marked *