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Something unusual is happening inside the US Treasury market.
American government bonds have just suffered an extraordinary sell-off, with the benchmark 10-year Treasury yield experiencing its biggest quarterly rise since 1994, while the 30-year yield has climbed to levels not seen since 2002.
But the latest concern isn't simply that yields are rising.
There are signs that the sell-off itself could be generating additional selling.
In this video, I look at the emerging “vicious loop” inside the Treasury market, including mortgage-backed securities, duration hedging, leveraged hedge-fund positions and why some investors may be forced to sell as yields continue to rise.
We also look at why apparently attractive Treasury yields haven't yet brought enough buyers back into the market, the impact of the US Treasury's bond-buyback programme, and why similar pressures are appearing in bond markets around the world.
And most importantly, what could finally break the loop?
With US government borrowing costs feeding directly into mortgages, corporate debt, stock-market valuations and the cost of servicing America's enormous federal debt, what happens next in the Treasury market could have implications far beyond bonds.
If you enjoy my videos, please give this one a thumbs up and subscribe to the channel.
#ustreasuries
#bondmarket
#useconomy
#federalreserve
#treasurybonds
#interestrates
#economy
#financialmarkets
#investing
#usdebt
#usa
#china
#iran
#japan
#uk
#germany
#USDebt
#TreasuryBonds
#BondMarket
#USBonds
#ChinaUS
#ChinaTreasuries
#GlobalFinance
#InterestRates
#BondYields
#USDeficit
#EconomicCrisis
#FinancialMarkets
#MacroEconomics
#USEconomy
#DebtCrisis
If you would like to support the Channel:
https://www.buymeacoffee.com/JoeBlogs
Patreon: joeblogsYT
YouTube Membership -N @joeblogs
YouTube Super Thanks (click below)
Something unusual is happening inside the US Treasury market.
American government bonds have just suffered an extraordinary sell-off, with the benchmark 10-year Treasury yield experiencing its biggest quarterly rise since 1994, while the 30-year yield has climbed to levels not seen since 2002.
But the latest concern isn't simply that yields are rising.
There are signs that the sell-off itself could be generating additional selling.
In this video, I look at the emerging “vicious loop” inside the Treasury market, including mortgage-backed securities, duration hedging, leveraged hedge-fund positions and why some investors may be forced to sell as yields continue to rise.
We also look at why apparently attractive Treasury yields haven't yet brought enough buyers back into the market, the impact of the US Treasury's bond-buyback programme, and why similar pressures are appearing in bond markets around the world.
And most importantly, what could finally break the loop?
With US government borrowing costs feeding directly into mortgages, corporate debt, stock-market valuations and the cost of servicing America's enormous federal debt, what happens next in the Treasury market could have implications far beyond bonds.
If you enjoy my videos, please give this one a thumbs up and subscribe to the channel.
#ustreasuries
#bondmarket
#useconomy
#federalreserve
#treasurybonds
#interestrates
#economy
#financialmarkets
#investing
#usdebt
#usa
#china
#iran
#japan
#uk
#germany
#USDebt
#TreasuryBonds
#BondMarket
#USBonds
#ChinaUS
#ChinaTreasuries
#GlobalFinance
#InterestRates
#BondYields
#USDeficit
#EconomicCrisis
#FinancialMarkets
#MacroEconomics
#USEconomy
#DebtCrisis