US BOND MARKET IN TURMOIL! What’s Behind the Sustained US Bond Sell-Off? Will It End?|AsianQuickTake

In this video, we dive deep into the ongoing turbulence in the U.S. bond market. 📈💼 Tags: U.S. Bond Market, Bond Yields, Federal Reserve, Financial Markets, Interest Rates, Inflation, Economy, Wall Street, Investment, Monetary Policy, Market Trends. The U.S. bond market is in turmoil as yields for 2-year and 5-year U.S. Treasury bonds reach levels not seen since the 2008 financial crisis. This is due to mounting expectations of further interest rate hikes by the Federal Reserve. Renowned experts like Zhao Yaoting from Invesco emphasize that the U.S. Treasury bond market is experiencing its most profound selloff since 2007. Despite the real yield on the 10-year U.S. Treasury bond crossing the 2% mark, the selloff continues, fueled by market uncertainty regarding the Federal Reserve’s future interest rate decisions. Several factors contribute to this phenomenon, including a massive influx of U.S. bond supply, rising U.S. dollar financing costs for cross-border trade, Federal Reserve balance sheet reduction, robust U.S. economic growth, and a hawkish stance by Federal Reserve Chairman Jerome Powell. Market sentiment is shifting, with increased expectations of Federal Reserve rate hikes, leading to further selling pressure on U.S. bonds. Hedge funds are increasing their net short positions in various U.S. Treasury bond futures, signaling their belief in further declines in bond prices. The persistent inversion of short-term and long-term U.S. Treasury bond yields has incentivized investors to seek short-term bonds for higher yields while divesting long-term holdings, contributing to the bond market’s complexity. To change this landscape, a swift shift in the Federal Reserve’s monetary policy is needed to alter market expectations. The market is concerned that further declines in bond prices and surging bond yields could lead to a migration of funds from stocks to bonds, potentially triggering a downturn in the U.S. stock market. Stay informed about global economic trends and financial markets by liking, subscribing, and enabling notifications. Thank you for watching, and join us for our upcoming videos! 🌏📊 💯TOP 3 Video China Shocks Yellen With Massive Selling of U.S. Bonds and Buying of Gold ▶ China to Accelerate Dumping of Up to $800bn U.S. Debt ▶ Swiss Sells $36.4 billion U.S. Treasuries ▶ ━━━━━━━━━━━━━━━━━━━━━ ✅ COPYRIGHT DISCLAIMER Asian Quicktake Doesn’t Fully Own Some of the Materials Compiled in Its Videos. It Belongs to People or Organizations Who Ought to Be Respected. If Used, It Falls Under the Following Provisions: Copyright Disclaimer Section 107 of the Copyright Act 1976. “Fair Use“ is Allowed for Purposes Such As Criticism, Comment, News Reporting, Teaching, Scholarships, and Research. ━━━━━━━━━━━━━━━━━━━━━ ✅ If You Are the Owner of the Materials Used in This Video, Let us Know in the Comments or Send a Email to me. We Will Follow Your Request Immediately. ━━━━━━━━━━━━━━━━━━━━━ ✅ FINANCIAL DISCLAIMER This Channel’s Content Should Not Be Interpreted or Construed As Financial Advice. We Are Not, and Do Not Claim to Be, an Attorney, Accountant, or Financial Advisor. This Channel’s Content is Not a Substitute for Financial Advice and is Solely for Entertainment Purposes.
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