Bonds & Stocks Hammered in Sharp Selloff as Yields Rise & Money Printing Get Out Of Control
Foreigners Selling US Treasuries The Bond Market Shrinks As Yields Rise & Money Printing Get Out Of Control
Stocks & Bonds Hammered in Sharp Selloff As Yields Rise & Money Printing Get Out Of Control
Stocks took a beating last week as investors sold off tech shares and Treasurys. The market is a predictor of the future economy, and we see already the mess Biden is creating.
Yields on the 10-year bond moved up sharply, rising above 1.6 percent. At the close of the stock market, the 10-year yield was at 1.51 percent. The sharp rise in bond yields this month has shaken the stock market.
The 10-year, for example, was yielding 1.09 percent on February 1. Bond yields rise when bond prices fall. Treasury yields spiked because foreign investors are getting out of US Treasuries.
That forces prices down and yields up. What do foreign investors know that US investors don’t?
As for the stock market, how does it justify these absurd P/E ratios when the economy is headed south?
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