In this Fund Insights post, Jason England discusses the Simplify Treasury Option Income ETF (BUCK), which seeks to generate additional income above Treasury bills with a risk-managed Treasury options strategy.
This time, though, the yield curve uninverted for a unique reason. The 10-year Treasury yield is rising instead of falling.Take a look... Investors aren't simply less pessimistic about the economy's long-term prospects than its short-term prospects. They're regaining confidence.
Interest Rates: The US 10-year Treasury yield dropped to 4.653% CHART OF THE DAY 🏆 Today's Chart of the Day was shared by @SubuTrade .
Stocks and Bonds gapped higher today, fueled by a cooler-than-expected inflation report. The +20yr Treasury Bond ETF ($TLT) had its best session since the election, rising +1.7% .
$TLT filled a huge gap from November 2023 yesterday before closing...
A reverse repurchase agreement (RRP) is a transaction where the New York Fed sells a security to a counterparty and agrees to buy it back at a specific price and time. The Fed uses RRPs to manage excess short-term liquidity in the market and prevent interest rates from falling below the Fed's target range.
They're choking the world of Dollars, so foreign nations & banks are forced to dump US treasuries significantly below face value. That's why they engineered the 2020 inflationary crisis, now it's deflation.
Bond Yields Are Skyrocketing
When bond prices drop, yields rise. The 10-year is sitting at 4.6% , threatening to break higher. For context, these levels haven’t been seen since the mid-2000s. Rising yields make borrowing more expensive for everyone – companies, governments, and even you.
Debt Loads Are Insane
The U.S. is rolling over hundreds of billions of dollars...
🏆 Today's Chart of the Day was shared by @WallStWingman .
The US 10-Year Treasury Yield ($TNX) closed at an eight-month high today, reaching a potential inflection point of around 4.7% .
After peaking at 5.0% in Oct. 2023, 4.7% has acted as resistance several times. The 10-year yield could revisit 5.0% if it clears this well-defined resistance level.
Bonds are like gravity – you can’t fight them for long. If yields keep climbing, here’s what you can expect:
Equity Valuations Will Get Crushed
Higher yields mean higher discount rates for valuing stocks. Translation: tech stocks, which are priced for perfection, will take a beating.
Volatility Will Spike
Rising bond yields tend to increase uncertainty, which spills over into the broader...
Check out this chart of the yield curve, subtracting the yield of the 10-year bond from the 3-month bill: Whenever the blue line on the chart above crosses below the horizontal black line, you earn more from owning short-term Treasurys than you do long-term Treasurys.As you can see, this had been the case from October 2022… until just this past month.
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot post attachments in this forum
