What if there was a market that, after months of laying dormant in a range of just a few pennies, rose by nearly 100% on guidance from a major influencer? That’s right, the next Dogecoin could be 2YR Treasury yields.
Though they employ the same word, the two phrases “return to normal” and “new normal” are diametrically opposed. If you’ve witnessed a live television commercial break in the last month, then you’re probably aware of society’s return to normal; while interest rates, on the other hand, are threatening a new normal as they fail to lift off 0%.
While “The Steepening” may sound like a Hollywood-produced thriller wherein an animated monster made of tea leaves terrorizes some unassuming small town, it’s in fact the increase in the spread between short-term and long-term interest rates.
For decades now, traders’ exposure to interest rates has been confined to allocating some small percentage of retirement funds to some bond fund for some reason like diversification.
The driver for the Gold market currently seems to be sentiment! The safe-haven aspects of the metal may have been a boost for the Gold, but will it be enough to propel it to further uptrends.
The Gold has bounced after the awaited Fed rate hike. It is unusual that Gold would trade up as the Crude Oil continues to slide.
Anyone who has been following Turner’s Take for a considerable amount of time (I started writing this particular newsletter since 2008) knows that as we have more macro-economic uncertainty, I tend to scale back on positions. For now we are in a wheat bear spread and a natural gas bull spread and that is fine… Read more.
From the overnight session the December 30-Year Bonds are up 23, the December Ten Year Note is up 10.5, and the five year note is up 6.5.
Gold prices rose as Asian markets reopened after a week-long holiday.
The English pound slipped in value on Tuesday against the U.S. dollar as the Bank of England chief prepares to present quarterly inflation data later this week, according to Bloomberg.