Green Shoots Appear to be Sprouting in the U.S. Bond Market
The bond market has shown signs of a revival, reflecting increasing optimism about a potential rate cut.
The bond market has shown signs of a revival, reflecting increasing optimism about a potential rate cut.
The CBOE Volatility Index (VIX) recently notched a six-month high, signaling that perceived risks in the financial markets are rising
The U.S. yield curve has been inverted since autumn of 2022, but the latest shift in the real yield curve suggests that the risk of a recession remains high in the American economy
Interest rates are poised to fall this year after the Federal Reserve announced it may cut rates as many as three times in 2024, which makes the bond universe increasingly attractive
Benchmark interest rates have surged to a 22-year high in the U.S. Investors should be closely monitoring this niche of the financial markets.
Federal Reserve chairperson Jerome Powell appeared before Congress on March 6 and indicated that rates may have to increase more than expected in 2023 to tame persistently high inflation
The U.S. bond market corrected sharply in 2022, but current economic conditions suggest a possible rebound this year
On Nov. 22, the spread between the 2- and 10-year Treasury bonds extended to -73 basis points, marking the sharpest inversion in the U.S. yield curve since 1982
The yield on the 2-year U.S. Treasury is currently 3.27%, while the yield on the 10-year U.S. Treasury is 2.82%, representing a multi-decade extreme in the relationship between the two.
Interest rates have been a focal point in the markets during the 2022 trading year, and to access this niche of the markets investors and traders can consider utilizing three different product groups: government bonds, Treasury yields and bond-focused ETFs.