Property Advertisement - AMO Residence for sale!

Property Advertisement - AMO Residence for sale!
Click on the banner for more details.

Search This Blog

Wednesday, February 21, 2018

US bond yields will continue to rise in 2018. Why?

The USA government has just issued 3 days of bond auctions totalling USD$250b and is expected to raise about USD$1T per annum till 2028.  Furthermore, QE taperings are also being executed simultaneously in Europe & USA.

The rising bond yields will affect the stock market because fund managers find bonds become more attractive.  Please look at our comment on the connection between bond yield & stock.

Last but not least, inflation pressure is also rising because of trade wars (anti-dumping measures).

1 comment:

Eric Ho said...

The lack of foreign investors is definitely a bad news for the USA bond market and it will cause the bond yield to rise more to attract investors.