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Are Nvidia, Eli Lilly, AMD's High Equity Valuations In Peril From Higher Rates?
Tuesday, February 27, 2024 - 4:35pm | 495Higher long-term rates typically matter a lot to equity valuations. However, according to DataTrek, today’s mega-cap stocks are likely to weather the current higher rate environment. Nvidia Corporation (NASDAQ:NVDA) has a price-to-earnings (P/E) ratio of 65.8 Eli Lilly And Company (NYSE:LLY...
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Treasury Yields Almost Fully Erase Post-Inflation Data Surge As Poor Retail Sales Reignite Fed Cut Hopes
Thursday, February 15, 2024 - 11:15am | 515The yields on U.S. Treasury notes have almost entirely retraced their surge following the release of the hotter-than-expected January inflation report. This indicates a swift shift in investor sentiment amidst conflicting economic indicators. The 10-year Treasury note saw a decrease to 4.21%...
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Mohamed El-Erian On Yield And Oil Price Drop: Economic Boon Or Major Downturn Ahead?
Tuesday, November 7, 2023 - 9:52pm | 681What Happened: Notable economist Mohamed El-Erian took to Twitter on Tuesday to highlight the recent downturn in yields and oil prices. He notes that this trend could be beneficial for the economy and most financial asset classes. However, he cautions that these advantages may...
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Treasury Department Reduces Q4 Borrowing Forecast Down To $776B, But Still Raises Eyebrows
Monday, October 30, 2023 - 5:05pm | 369The U.S. Treasury Department has lowered its estimate for federal borrowing in the fourth quarter to $776 billion, down from the previously predicted $852 billion. Investors are breathing a sigh of relief with this cut, given their rising worries over the expanding fiscal deficit. However, even...
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Will Treasury's Upcoming Monster Borrowing Plans Outshine Fed's Interest Rate Call?
Monday, October 30, 2023 - 4:13pm | 508The spotlight on Wednesday could move from the Federal Reserve’s policy meeting to the Treasury Department’s forthcoming borrowing plan. What Happened: The Treasury Department’s quarterly refunding announcement is expected to reveal its strategy to amplify sales of long-term debt...
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Janet Yellen Dismisses Deficit As Cause Of Bond Yield Rise: Here's What She Says Set Off Treasury Turmoil
Thursday, October 26, 2023 - 3:33pm | 419The recent surge in long-term bond yields in the U.S. is a reflection of the nation’s economic robustness, not the expanding fiscal deficit, according to U.S. Treasury Secretary Janet Yellen. Yellen suggests the rise in yields — which has resulted in benchmark Treasury rates reaching...
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10-Year Treasuries Exceed 5% For First Time Since 2007, Then Crater On Ackman Short Cover
Tuesday, October 24, 2023 - 2:30pm | 882A milestone of sorts was achieved in the U.S. Treasury market on Monday, as the yield on the 10-year Treasury Note exceeded 5% for the first time in 16 years. This rate, widely recognized on Wall Street as a pivotal gauge of the note’s market’s stability, poked above a key psychological...
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10-Year Yield At 5% Triggers Waves Of Treasury Buyers: Bill Ackman, Technical Indicators Hint At Potential Shift
Monday, October 23, 2023 - 12:19pm | 825It’s another day of intense fluctuations in Treasury bond yields, with particular attention focused on the 10-year Treasury yield. At the start of the week, this crucial benchmark broke through a significant psychological barrier, surging to 5.02%, its highest level since mid-July 2007....
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30-Year Yields Rise Above 5% As Biden Announces 'Unprecedented' Congress Support For Israel
Wednesday, October 18, 2023 - 11:15am | 740The yields on 30-year Treasuries crossed the 5% mark once again on Wednesday after President Joe Biden delivered live press remarks during his visit to Israel. Biden committed to an “unprecedented support package for Israel,” to be unveiled this week. “You are not alone,”...
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2-Year Treasury Yields Hit 17-Year Highs, Analyst Says US Bond Market 'Is Losing Its Strategic Anchor'
Tuesday, October 17, 2023 - 1:25pm | 810Treasury yields continue to surge, defying expectations and causing further strain in the U.S. core bond market. On Tuesday, yields on the 2-year Treasury note reached 5.2%, marking its highest level in over 17 years. The last time short-term Treasury security yields were this elevated was back in...
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Economists See Recession Risk Waning, End Of Fed Rate Hikes: How Could Treasury ETFs React To Yields?
Monday, October 16, 2023 - 1:23pm | 790Economists are increasingly upbeat about the U.S. economy, with a growing consensus that the country is headed for what is known as a soft landing. In the latest quarterly survey conducted by The Wall Street Journal, 65 economists have collectively lowered their recession probability forecast for...
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The Intricate Dance Of Crude Oil And Treasury Yields: A Deep Look At Market Correlations
Thursday, October 5, 2023 - 1:47pm | 857Over the past five trading sessions, crude oil has gained significant attention from traders and investors. Crude oil prices have plummeted over 12% since briefly touching the $95.03 mark. I've delved into the fundamental landscape for this pullback: Producers are lessening their short...
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McCarthy Under Pressure As Clock Ticks To Avert Shutdown: Treasury Yields Mirror Market Jitters
Tuesday, September 26, 2023 - 3:23pm | 653As the clock ticks toward an Oct. 1 deadline to avoid a shutdown, the U.S. government is grappling with political brinkmanship that threatens to disrupt federal funding. Senate negotiators from both sides of the aisle are inching closer to a short-term spending agreement aimed at averting a...
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US 10-Year, 30-Year Yields Hit Decade Highs, Shaking 5 Treasury ETFs
Monday, September 25, 2023 - 1:14pm | 694The Federal Reserve’s commitment to maintaining higher interest rates for longer has unleashed seismic tremors within the bond market, culminating in an explosive surge in yields across all maturity periods. Initially, the reverberations were absorbed by 2-year yields, a segment that had...
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Rising Brent Crude Prices Could Tighten US Interest Rates, Warn Economists
Wednesday, September 6, 2023 - 10:27am | 821Once again in the spotlight, Brent crude oil prices, are at their highest levels this year. This is largely due to anticipated further reductions in oil output from major exporting countries. In a surprising move, Saudi Arabia has hinted at even more significant production cutbacks in the near...