This is the part I’d watch. Oil is pushing inflation back up while governments are already drowning in debt. Now the bond market wants more interest to lend them money. If yields keep climbing, the Fed can’t just cut rates and make the problem disappear.
Global bond yields soar to multi-decade highs as Middle East turmoil reignites inflation fears
Government bond yields jumped across major markets Tuesday, with borrowing costs in Japan and the U.K. touching multi-decade highs, and U.S. Treasury yields surging, as renewed Middle East hostilities reignite inflation concerns.
The key U.S. 10-year Treasury note yield moved to a 20-month high, rising 3 basis points to trade at 4.7880%.
Japan’s benchmark 10-year bond yield jumped more than 6 basis points, moving to 3% for the first time since 1996. Japan’s short-term 2-year government bond yield also touched a 31-year high of 1.81%.
Elsewhere, yields on U.K. 10-year government bonds, known as Gilts, rose more than 9 basis points to 5.2341%, their highest level since June 2008 in the midst of the Global Financial Crisis. The U.K. 30-year Gilt yield, meanwhile, soared 9 basis points to 5.8856%, its highest level since March 1998.
Government bond yields are hitting multi-decade highs, reflecting anxiety about debt levels, deficits and inflation. The effects will extend to mortgages, business loans and other types of credit.
What’s faster than a speeding bullet, more powerful than a locomotive, and able to leap tall buildings in a single bound? No, it’s not Superman. It’s the stock market anytime President Donald Trump is in the White House.
During Trump’s first, non-consecutive term, the timeless Dow Jones Industrial Average (DJINDICES:^DJI), benchmark S&P 500 (SNPINDEX:^GSPC), and technology-propelled Nasdaq Composite (NASDAQINDEX:^IXIC) rallied 57%, 70%, and 142%, respectively. Since the president’s second-term inauguration, these indexes have gained an additional 23%, 28%, and 32%, respectively (as of the closing bell on Aug. 24).
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »