FLGV News and Press, Franklin Liberty U.S. Treasury Bond From 03/05/21

The money flowing from the central banks and governments has created the so-called "pent-up demand" and predictions of 5% or more GDP growth next year. But capacity utilization is down even while trillions of new dollars pour into the system. Inflation expectations are continuing to g...

A few sparks caused an explosive rise in market rates yesterday, but this should not obscure the fact that the bond market has been sitting on a powder keg since last week. Expectations are rightly for higher US rates, and it is logical for long-dated GBP and EUR rates to rise in tand...

When it comes to inflation, it's certainly true that copper is far more accurate with forecasts than the vast majority of economists. Copper price broke down in an epic fakeout last year before reversing and breaking out, in convincing fashion, to the upside. The recent breakout i...

In the fixed income world, the yield on the 10-year Treasury bond briefly broke through 1.60% Thursday. This is still low by historical standards but represents a sharp and rapid. We look at weakness in the bond market (remember, bond prices fall as yields rise) and the resulting equi...

Despite the stock market's gyrations last week, the 10-year Treasury yield spiked above the 1.6% level on Thursday. The catalyst for the surge in yields was a horrific 7-year Treasury bond auction with a very weak bid-to-cover ratio of 2.04. This essentially means the U.S. budget ...

Despite the short-term pullback in yields, the long-term trend for bond yields remains up and the stock market, although weakened, is still not completely in sell territory, although that could change in a hurry. The Fed is either going to have to step up its bond buying to lower rate...

The 10-year Treasury yield fell below 1% in the early stages of the Covid-19 pandemic. As you've probably heard, it's back above that level now and rising fast. Shorter-term rates continue to stay low though, causing a steepening of the yield curve. This week, I am taking a quanti...

The recent rise in Treasury yields has spooked the equity markets. This is obvious from the recent performance of the bond markets as compared to the stock markets. Inflation is not the cause of this rise, but rather a combination of the stimulus measures, a rebounding economy, our CO...

Prices in government bond markets around the world dropped this week and yields soared as investors focused ever more closely on the potential for inflation to come roaring back in the second half of the year, if not sooner. If the Fed is truly content to sit back and watch intermedia...

Bonds were selling off, stocks were selling off, commodities were rallying. What really happened last week was the market's real growth expectations improved. What investors should have learned last week is that diversification does indeed work and it works when you need it most. ...