tyb
it's a free speech board anon. nothing wrong with that. If no one took the initiative then the entire team baking concept would have never flourished.
US Yields Could Still Have Quite A Bit More Downside
this is created when 'investor's feel threatened by a jittery stock mkt and try to park money into gov't bonds/notes and that means the Treasury can lower the rate it returns on them
To the dismay of many observers, US treasury yields have been dead as a doorknob despite the 20% rally in stocks over the last three months. In fact, the US 10-year yield is on the verge of breaking below the 2.56% level it reached on January 4th when recession concerns were flaring. This obviously begs the question of what US yields are sniffing out that equities are not?
It’s a fair question, but the answer isn’t necessarily one that results in a binary outcome of stocks up>rates up, stocks down>rates down. In other words, rates can perfectly well head lower even as stocks chug higher if the right mix of declining growth and inflation is commingled with accommodation monetary policy. Indeed, that is exactly what we got in early 2016 when 10-year rates fell from 2.32% to 1.36% over the span of six months while stocks rallied by 17% from the February ’16 lows into July of that year. That setup looks similar to today and several leading market indicators are telling us so.
(See cap for the longer term problem that was created by this bifurcation between actual performance and hot air)
https://www.zerohedge.com/news/2019-03-21/us-yields-could-still-have-quite-bit-more-downside
Need to add this. Just because the rate of return drops on the 10yr note, which is a benchmark for many mortgages, it does not necessarily translate into a lower rate on financial products tied to those rates.
The system ALWAYS get's it's cut. Dropping returns on this will mean that it will become harder for them to generate margin on said loans.
concur. the nose's are too close