Inflation risk is topical again, as I’ve been discussing this week. As a result, the bond market is demanding a higher yield premium to compensate for the possibility that inflation will be higher than recent expected. The question for investors: Does the runup in Treasury yields to date suffice, given the current inflation expectations? In the first of a series of new indexes to help shed light on an answer, here’s a look at CapitalSpectator.com’s US 5-Year Yield Opportunity Index (YOI).
Daily Archives: January 10, 2025
Macro Briefing: 10 January 2025
In an effort to combat deflation, China’s central bank temporarily stopped buying the country’s government bonds. The Peoples Bank Of China “may be attempting to signal to all market participants that rates have come down too low and too fast,” says Peter Alexander, founder of Shanghai-based consulting firm Z-Ben Advisors.
