General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThe bond market is flashing a signal not seen since before the 2008 crisis
Troubling developments unfolded in the U.S. bond market on Thursday that had some investors drawing comparisons with the run-up to the 2008 financial crisis.
The current problems start with rising oil prices as a result of the U.S.-Israeli war against Iran, which is raising the risk of stagflation and the prospect of a 2026 interest-rate hike by the Federal Reserve. Brent crude the global oil benchmark, briefly blew past $119 a barrel on Thursday as attacks escalated on oil-and-gas infrastructure in the Persian Gulf. West Texas Intermediate crude-oil futures briefly crossed $100 a barrel.
But even as oil prices have spiked and stock prices come down, Treasurys, often seen as a haven during times of market unease, havent rallied on a continual basis. Instead, fears that the war in the Middle East could morph into a full-blown energy crisis pushed the policy-sensitive 2-year Treasury yield above the Federal Reserves interest-rate target on Thursday. Bond yields move inversely with prices and rise during selloffs.
Thursdays bond-market selloff caused the Treasury yield curve to exhibit what traders describe as a bear-flattening pattern. This actually began back in early February. Typically, the pattern emerges when bond traders are bracing for a difficult economic environment ahead.
https://www.msn.com/en-us/money/markets/the-bond-market-is-flashing-a-signal-not-seen-since-before-the-2008-crisis/ar-AA1Z0IQA
Gee what's the commonality here?
Ponietz
(4,343 posts)They might turn out to be worth even less than the paper they werent even printed on.
Klarkashton
(5,319 posts)hahahahahahahaha
Wednesdays
(22,640 posts)equals watching a couple of niche videos on YouTube.
calimary
(90,100 posts)Besides not so well?
When thats the way, karma tends to step in at some point, especially when ones feelings of invincibility start wobbling.
modrepub
(4,117 posts)Doing your own brain surgery, which I wish more MAGA would do.
AZ8theist
(7,407 posts)
stage left
(3,312 posts)for laughing at your post? I wish more of them would take it up as a hobby.
regnaD kciN
(27,649 posts)Quanto Magnus
(1,350 posts)is rubbing his hands gleefully and laughing at the U.S.
stage left
(3,312 posts)I thought he was dying of cancer.
TheRickles
(3,401 posts)So I'm not sure where the safe haven is for investors.
mahina
(20,647 posts)Money market funds?
Sell everything and buy Swiss francs?
A bit late...
I've asked the question of the general body here with no response, I am so not ma'a (familiar, easy) with financial stuff. But I would like what I have not to become wallpaper!
TheRickles
(3,401 posts)Many doomsayers feel that the stock market is only riding an AI bubble that will soon burst, so tangible assets like property and metals are the way to go as we ride out the storm. Unless you want to invest in the MIC, which seems to be doing quite well at the moment.
The Madcap
(1,911 posts)That statement is going to haunt these incompetent clowns for years.
Diraven
(1,910 posts)That said just interest on the national debt will exceed total tax receipts in only 5 years. I wonder will happen to the bond market then?
MLWR
(1,029 posts)Warpy
(114,616 posts)but now his main exp0sure is in government bonds as he's slowly been converting his ill gotten crypto billions into them
OIr maybe I want to live to see him broke as well as disgraced and isolated.