DTUS News and Press, Barclays Bank PLC ZC SP REDEEM 13/08/2020 USD 50 - Ser A 06740L519 From 04/02/19

Since the zero lower bound distorts the yield curve at very low rates, an inverted yield curve at low rates is worse than an inverted yield curve at higher rates. This is a reason why the curve didn't invert in the 1950s. The necessary adjustments here could be made either by just looking ...

By Schwab Center for Financial Research A snapshot of yields on a series of bonds. A normal yield curve slopes upward from shorter maturities to longer ones. Investors usually require extra return to tie up their money for longer periods. Changing yield curve. The slope can chang...

Kathy Jones: Most investors understand the importance of having an allocation to fixed income in their portfolios for generating income, capital preservation, and diversification, but when it comes to diversification from stocks, not all bonds are created equal. I'm Kathy Jones, and t...

Fed Chairman Jerome Powell's decision in December to raise the federal funds target by 25 basis points, to 2.25-2.50 percent, and to continue raising rates at least twice in the new year, upset financial markets. The Dow and S&P each dropped at least 8.7 percent , logging their worst Dece...

There are many harsh lessons to be learned from the gambling experience, but the harshest one of all is the difference between having Fun and being Smart." - Hunter S. Thompson Looking at the return of the "D" trade, "D" for "Deflation" that is with the return of the strong "bid" for bonds...

The Fed sets interests rates. But how does the Fed set interest rates? The Fed is undergoing a big review of this question. We had a little workshop at Hoover in preparation for the larger May 3 Strategies for Monetary Policy conference , which provokes the following thoughts. Issue ...

When you're young and you fall off a horse, you may break something. When you're my age, you splatter. - Roy Rogers A lot of people in the bond markets have recently fallen off their horse. They called and called for higher yields based upon the Fed's statements in the Fall and Winter,...

MMTers tend to back the permanent zero interest rate idea. E.g. Warren Mosler (and Matthew Forstater) wrote a paper entitled "The Natural Rate of Interest is Zero." Milton Friedman also said he couldn't see the point of interest-yielding government debt (see his para starting "Under the pr...

By Ryan McMaken Money supply growth slowed in February, falling to the lowest rate recorded since February of last year. Overall, money-supply growth remains well below the growth rates experienced from 2009 to 2016, and has fluctuated little since March of last year. In February, year-o...

Last year, I wrote an article entitled "The Upcoming Bond Bull Market," which, at the time, was pushing against the mainstream consensus which was predicting rates could only go higher. I am updating that article with the latest data points as the overall thesis of "why" we have remained bu...