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Bonds

All articles tagged with #bonds

Gold climbs to a three-month high as inflation fears and bond jitters persist
business50 minutes ago

Gold climbs to a three-month high as inflation fears and bond jitters persist

Gold rose to its highest in three months as traders weigh US inflation and ongoing bond-market jitters, with spot gold near $4,650 an ounce after the Treasury expanded long‑dated debt purchases. Global stocks opened higher on tech optimism ahead of Nvidia results and US inflation data, while Brent crude hovered just under $90 a barrel. Other headlines include resilient US house prices with slowing momentum, Lego's strong half-year sales, Vistry’s £350m affordable-homes grant, and the liquidation of First Brands Group, alongside warnings from veteran investors about attempts to suppress yields amid mounting debt concerns.

Bessent's Bond Buyback Plan Could Sink Long-Term ETFs
finance2 hours ago

Bessent's Bond Buyback Plan Could Sink Long-Term ETFs

Motley Fool argues that Scott Bessent's plan to double buybacks of long-term Treasuries has failed to calm markets, with 30-year yields at multi-year highs and long-duration bond ETFs like EDV and TLT potentially facing further declines; given the national debt and higher rates, a diversified approach such as the Vanguard Total Bond Market ETF (BND) may be a safer option than sticking to EDV or TLT.

Gold breaches $4,600 as U.S. debt worries and bond-buyback bets boost safe-haven demand
markets2 days ago

Gold breaches $4,600 as U.S. debt worries and bond-buyback bets boost safe-haven demand

Gold climbed for a third straight week, topping $4,600 as concerns about U.S. debt and the Treasury’s move to double long-dated bond buybacks boosted demand for safe havens, aided by a weaker dollar; analysts say the rally is driven more by bond-market interventions than rate expectations, with July PCE data and Fed Chair Warsh’s Jackson Hole speech in focus next.

Dalio Urges Bond Selloff, Gold and Bitcoin as Debt Risks Rise
finance2 days ago

Dalio Urges Bond Selloff, Gold and Bitcoin as Debt Risks Rise

Billionaire Ray Dalio says investors should underweight bonds and allocate about 10-15% of portfolios to gold, with a smaller allocation to Bitcoin, to hedge against a potential U.S. debt crisis in roughly three years. He advocates broad diversification across assets and countries, notes rising long‑term yields and fiscal strains, and argues that non‑government money like gold and Bitcoin could perform well if deficits persist and currencies weaken. He also calls for reducing the budget deficit toward 3% of GDP through spending cuts, higher revenue, and lower interest costs.

Sanctions vs Bonds: Iran's Economic Pressure Tests Markets
business4 days ago

Sanctions vs Bonds: Iran's Economic Pressure Tests Markets

The U.S. leans on sanctions rather than new strikes to pressure Iran, as Treasury Secretary Bessent touts a possible $4 billion debt buyback and says the deficit may have peaked; however, bond yields rebound and the S&P 500 falls about 0.9%. A UAE trade cutoff could hurt Tehran, Japan sees inflation at a high for the year, Moderna/Merck report cancer vaccine data, and bitcoin rallies while Walmart slides on weak outlook and yen intervention fuels carry trades.

Treasury doubles long-dated bond buys as U.S. debt tops $40 trillion, lifting markets
markets5 days ago

Treasury doubles long-dated bond buys as U.S. debt tops $40 trillion, lifting markets

The U.S. Treasury plans to nearly double buybacks of 10–30 year bonds to at least $4 billion per operation over the next two months to tamp down borrowing costs as debt surpasses $40 trillion, sending bond prices up, yields lower, and lifting stocks and cryptos. The surge in debt also highlights near $1.2 trillion in interest payments this year. In other notes, Trump criticizes the Fed and vows action against Iran, while Moderna and Merck report promising cancer-vaccine trial results; Nvidia is pursuing Nordic AI infrastructure deals to connect data centers with its GPUs.

Treasury doubles debt-buyback plan, sends long-term yields lower and boosts stocks
business5 days ago

Treasury doubles debt-buyback plan, sends long-term yields lower and boosts stocks

The U.S. Treasury surprised markets by significantly expanding its debt repurchase program, making it a larger buyer of longer-term Treasuries. In response, long-term yields fell (the 30-year yield slipping to about 5.18% from 5.26% and the 10-year easing to roughly 4.63% from 4.68%), while stocks rose on the news. The move, set to begin Sept. 9, is viewed as a tactical step to support rates rather than a debt paydown and could offer short-term relief for rates like mortgages, though analysts warn it may carry unintended consequences and depend on broader policy actions.

Futures Flat as Bond Rout Rattles Markets Ahead of Fed Minutes
business6 days ago

Futures Flat as Bond Rout Rattles Markets Ahead of Fed Minutes

U.S. stock futures hovered near flat after major averages fell for a third straight session as a global bond rout and higher oil prices weighed on sentiment; yields around the world rose to multi‑decade highs while investors await the Fed minutes for clues on policy, with retail earnings from Target, TJX and Lowe’s due this week as Asia-Pacific markets extended declines on the bond selloff.

Global Rate Hikes Put Bond Diversification at Risk
markets7 days ago

Global Rate Hikes Put Bond Diversification at Risk

Bloomberg reports that rate hikes are expected across major economies beyond the U.S., with about two-thirds of tracked swap markets pricing higher policy next year. Fueled by energy costs, fiscal stimulus, and an AI-driven growth boom, inflation pressures could force central banks to tighten further, potentially turning bonds from portfolio ballast into a drag as yields rise and financing conditions tighten, weighing on both bonds and equities.

Global Bond Rout Lifts Long-Dated Yields to Multi-Decade Highs
markets7 days ago

Global Bond Rout Lifts Long-Dated Yields to Multi-Decade Highs

Global bond markets are selling off as long-dated yields surge across the US, Europe, the UK, and Japan, with US 30-year yields around 5.32% — the highest since 2007 — and France, Germany, and the UK near multi-decade highs. The rise appears driven more by higher real yields than a surge in inflation expectations, amid a flood of long-term corporate debt and a shift away from official buyers to private investors. Governments are issuing more short-term debt to cope with higher financing costs, raising concerns about the durability of ultralow rates for the long run.

Long-Dated Bond Rout Lifts US 30-Year Yields Toward Crisis-Era Peaks
markets7 days ago

Long-Dated Bond Rout Lifts US 30-Year Yields Toward Crisis-Era Peaks

Bloomberg reports the yield on the US 30-year Treasury jumped to about 5.29%, the highest since 2007, as a broad bond selloff driven by mounting national debt, heavy long-dated supply, and inflation sticking well above the Fed’s target pushes long-term rates higher. Last week’s 30-year auction yielded 5.216% (the highest for such an auction since 2001) and a 10-year sale also faced elevated financing costs, even as data suggested some inflation cooling and softer payrolls/retail figures. The move deepens the yield curve’s steepening as investors demand more compensation for long-duration debt amid high issuance and debt concerns, with inflation still around 3.4% YoY and Fed-rate pressures likely to stay elevated.