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2-year Treasury yield posts largest single-day gain in around six weeks

“The benchmark 10-year Treasury yield TMUBMUSD10Y, +2.09% climbed 4.7 basis points to 2.254%, the biggest single-day gain since July 25” writes Sunny Oh for marketwatch.com. While, the yield for the 30-year Treasury bond TMUBMUSD30Y, +1.42%  , known as the long bond, rose 3.4 basis points to 2.839%.The two-year note’s yield TMUBMUSD02Y, +1.82% sensitive to expectations for Federal Reserve policy,  rose 2.8 basis points to 1.351%, the largest single-day jump since July 3, extending the weeklong gains to 5.6 basis points.Bond prices move inversely to yields.Elsewhere, the U.K’s inflation numbers came…

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Tesla’s ‘cash burn’ likely peaked, one analyst says

“Tesla Inc., fresh from a successful bond sale, is likely to have seen the worst of its money spending and cash burn” writes Claudia Assis for marketwatch.com. TSLA, -0.04% They are expecting the company to burn through about $600 million in cash in the fourth quarter, but said the second quarter “already likely represented the company’s peak cash-burn quarter,” at around $900 million.That’s according to analysts at Guggenheim, who on Tuesday tweaked their earnings expectations for the electric car maker.Tesla’s most-active bonds, the 2.375% notes that mature in March of…

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Traders lift bets on one more rate hike this year up above 50%

“Traders on the federal-funds futures market ramped up their bets for one more rate hike this year to above 50%, according to CME Group data. 47% of the odds were on a quarter-percentage point point hike for the Dec. 13 policy meeting, and 3.4% of the odds were for a half-percentage point hike” reports marketwatch.com. The increase in odds for a rate hike have also helped lift financial stocks.The 2-year Treasury yield TMUBMUSD02Y, +1.52% , sensitive to the outlook for central bank policy, have risen about 5 basis points this…

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An economist just made a surprising call about bonds

“At this juncture, several factors point to downside for the 10-year Treasury yield, said Gina Sanchez, CEO of Chantico Global” writes unknown author for cnbc.com. Such weakness in the bond market could begin taking stocks along with it, Sanchez said Friday on “Power Lunch.”. Additionally, growing geopolitical tensions between the U.S. and North Korea, which appear to have cooled Monday, could also depress bond yields.The consumer price index, traditionally a measure of inflation, has underdelivered this year, which could stand to push bond yields further down. However, she said, “If…

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Skepticism Mounts About the Next Fed Rate Hike

“The market is once again second-guessing whether the Federal Reserve can lift rates again this year” writes Ben Eisen for wsj.com. The yield on the two-year Treasury note, which tends to rise alongside expectations for interest rate increases, fell to 1.29% from its early-July level of 1.41%, the highest since 2008. In the fed funds futures market, where traders wager […].  Source: wsj.com Share This:

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Treasury yields tick lower as investors look ahead to inflation report

“The 10-year Treasury yield TMUBMUSD10Y, +0.35% edged lower 2 basis points to 2.191%, from 2.211% in the previous session” writes Sunny Oh for marketwatch.com. Amid weakness in inflation data, market participants have shown concerns that a further rate increase could result in a policy misstep, and inadvertently slow down the economy.Investors will brace for a release of consumer-price inflation data (CPI) that could clarify how much the Federal Reserve will tighten monetary conditions.Treasury yields extended their three-day decline on Friday ahead of inflation numbers that could aid the case for…

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This could be ‘the scariest chart in the financial markets right now’

“In a similar vein, trader Tiho Brkan warns that complacency among investors is continuing as warnings mount” writes Markets Writer for marketwatch.com. Read: Snap earnings — as Facebook and Google challenges build, a new approach And see: Nvidia earnings — cryptocurrency boom could lead to new products Facebook FB, -0.03% is getting attention for its new Watch tab and its copycat moves. Source: marketwatch.com Share This:

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Why Gundlach says ‘coiling’ markets could spark a volatility surge

“One way or the other, [the 10-year Treasury yield is] going to have to break to the upside” writes Sunny Oh for marketwatch.com. Bond savant Jeff Gundlach says “coiling markets” could prompt a surge in volatility as Wall Street’s so-called “fear gauge” remains at multidecade lows.Yet the 10-year German government bond’s yield TMBMKDE-10Y, +0.63% also known as bunds, resides below 0.5%, while the 10-year Treasury yield TMUBMUSD10Y, -0.71% sits at close to 2.24%.Gundlach said he expected a 3% pullback “between now and November,” enough to cause equity volatility to spike.But…

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‘To get that whacked on top would be a killer’ – how stamp duty is holding back Britain’s housing market

“In a few weeks, they will move into a three-bedroom house in Crawley with that coveted outside space and separate rooms for William, five, and Olivia, two” writes Steve Bird for telegraph.co.uk. But because of expensive house prices and the financial burden of stamp duty this long awaited move has required help from a housing association. “We are buying 25 per cent of the house, with the rest being paid in rent to a housing association,” said Mr King, 40, a yield manager in the aviation sector. “Taking on that…

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