US treasury market
The US treasury prices have been trending up because the yields have been falling. The yield has an inverse relationship to its bond price.
The S&P and VIX should also have an inverse relationship but the S&P and VIX moved in sync (Trending up) recently which was abnormal.
The US properties, MBS, CMBS and car resale markets are also distorted now.
http://sg-stock.blogspot.com/2020/08/market-distortions-are-precursors-of.html
In a nutshell, the US treasury prices, S&P and VIX shouldn't be moving in sync (trending up) simultaneously because there will be asset reallocations when the risks are higher. The US FED has disrupted all these markets!
No comments:
Post a Comment