Debt/Bond Markets

2-year Treasury yield hits one of highest levels since 2007 as bond selloff continues

2-year Treasury yield hits one of highest levels since 2007 as bond selloff continues

Treasury yields continued to climb on Monday, with the 2-year rate reaching one of its highest levels since 2007, as bonds tumbled in the wake of Federal Reserve Chairman Jerome Powell’s hawkish remarks at Jackson Hole. What’s happening? The yield on the 2-year Treasury TMUBMUSD02Y, 3.425% climbed to 3.437% from 3.391% on Friday. It gained …

2-year Treasury yield hits one of highest levels since 2007 as bond selloff continues Read More »

Shrinking the Fed's balance sheet is not likely to be a benign process, new Jackson Hole study warns

Shrinking the Fed’s balance sheet is not likely to be a benign process, new Jackson Hole study warns

“If the past repeats, the shrinking of the central bank’s balance sheet is not likely to be an entirely benign process and will require careful monitoring of the banking sector’s on-and off-balance sheet demandable liabilities” — Raghuram Rajan, former Governor of the Reserve Bank of India and former Chief Economist at the IMF The Federal …

Shrinking the Fed’s balance sheet is not likely to be a benign process, new Jackson Hole study warns Read More »

Shrinking the Fed's balance sheet is not likely to be a benign process, new Jackson Hole study warns

Shrinking the Fed’s balance sheet is not likely to be a benign process, new Jackson Hole study warns

“If the past repeats, the shrinking of the central bank’s balance sheet is not likely to be an entirely benign process and will require careful monitoring of the banking sector’s on-and off-balance sheet demandable liabilities” — Raghuram Rajan, former Governor of the Reserve Bank of India and former Chief Economist at the IMF The Federal …

Shrinking the Fed’s balance sheet is not likely to be a benign process, new Jackson Hole study warns Read More »

Fed chief Powell 'did what he needed to do' in Jackson Hole, Larry Summers says

Fed chief Powell ‘did what he needed to do’ in Jackson Hole, Larry Summers says

“ ‘The Fed is positioned as well as it can be — given the credibility losses and mistakes that there have been — with these remarks to manage things going forward.’ ” — Larry Summers Former US Treasury Secretary Lawrence Summers handed out some rare praise for the Federal Reserve on Friday, saying Fed chief …

Fed chief Powell ‘did what he needed to do’ in Jackson Hole, Larry Summers says Read More »

Fed chief Powell 'did what he needed to do' in Jackson Hole, Larry Summers says

Fed chief Powell ‘did what he needed to do’ in Jackson Hole, Larry Summers says

“ ‘The Fed is positioned as well as it can be — given the credibility losses and mistakes that there have been — with these remarks to manage things going forward.’ ” — Larry Summers Former US Treasury Secretary Lawrence Summers handed out some rare praise for the Federal Reserve on Friday, saying Fed chief …

Fed chief Powell ‘did what he needed to do’ in Jackson Hole, Larry Summers says Read More »

Fed's Powell sparked a 1,000-point rout in the Dow.  Here's what investors should do next.

Fed’s Powell sparked a 1,000-point rout in the Dow. Here’s what investors should do next.

Now it might be the time to consider hiding out in short-dated Treasurys or corporate bonds and other defensive parts of the stock market. On Friday, Federal Reserve Chairman Jerome Powell talked of a willingness to inflict “some pain” on households and businesses in an unusually blunt Jackson Hole speech that hinted at a 1970s-style …

Fed’s Powell sparked a 1,000-point rout in the Dow. Here’s what investors should do next. Read More »

Fed's Powell sparked a 1,000-point rout in the Dow.  Here's what investors should do next.

Fed’s Powell sparked a 1,000-point rout in the Dow. Here’s what investors should do next.

Now it might be the time to consider hiding out in short-dated Treasurys or corporate bonds and other defensive parts of the stock market. On Friday, Federal Reserve Chairman Jerome Powell talked of a willingness to inflict “some pain” on households and businesses in an unusually blunt Jackson Hole speech that hinted at a 1970s-style …

Fed’s Powell sparked a 1,000-point rout in the Dow. Here’s what investors should do next. Read More »