Yields and Historical Volatilities

Yields Below, check out the 2-, 5-,10-, 20-, and the 30-year Treasury yield to maturity. To see how the yields have changed, look at the different color lines. The 30-year yield hasn’t changed much from one year ago—moving from 1.7% to 1.8%. But on the short end, it has changed quite considerably, moving from 0.20% … Continued

The Yield Trade

Investors and traders can express their opinions on the underlying economy using Treasury Yields, as these rates typically fluctuate alongside changing expectations for the U.S. economy.

A Bad Omen for the Market

Treasury yields and stock market valuations traditionally share a positive correlation, but in 2021 that relationship seems to have broken down—at least temporarily. Here is what yields are telling us now.

Trading Inflation Expectations

Spiking inflation has been a hot-button topic in 2021, but U.S. Treasury yields have actually declined in recent weeks, suggesting there may be more to this story than meets the eye.

How to Hedge Using Futures

Hedging can be conducted at the position level and portfolio level (or both), and one potential vehicle for such protective hedges are futures, which cover a wide spectrum of products/sectors.

Trading Interest Rates Using Surging Treasury Yields

Hopes for a strong economic rebound in 2021 are pushing interest rate expectations higher, catalyzing a rally in U.S. Treasury yields. Recent economic data suggests inflation may be rising. That means the prices of goods and services in the economy are moving slightly higher, which can be indicative of a healthy economy. The risk, as … Continued