Bond Prices: Rally Yields and Patient Stance

bond prices: Equity investors have mostly looked past fears of a trade-induced economic downturn, while the bond market has shown greater trepidation over the U.S.-China trade spat, leading bond prices to rally and yields to fall to multi-year lows on a trio of rate-cut fears, geopolitical jitters and recession concerns, according to Market Watch. I'm in the camp that thinks the Fed will cut by the end of the year, Peter Boockvar, chief investment officer at Bleakley Advisory Group, told Market Watch. That should worry stock-market bulls who have leaned on the Federal Reserve's patient stance with interest-rate hikes and the perception of a swift resolution of trade tensions to power double-digit percentage gains, even as the latter was overshadowed by the increasingly strident rhetoric between Washington and Beijing. The stock market is more hopeful and the bond market yields continue to plumb new lows and is much more skeptical. Stocks and bond yields tend to move together as expectations for higher growth and inflation lifts appetite for stocks and weighs on bonds, pushing their yields higher. At some point, we'll get some reconciliation between the two assets said Boockvar. (news.financializer.com). As reported in the news.

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