Europe's Growth Problem And Your Portfolio
Unprecedented negative yields in Europe continued to depress yields on U.S. Treasury bonds last week. The negative yields in Europe have caused an inversion of the U.S. yield curve and set off fears of a U.S. recession. Stocks rose anyway.
The yield on a 10-year German government bond this past week ticked lower, falling to -0.70%, making institutional bond investors from across the globe prefer U.S. Treasury bonds, which offered higher-yields.
Bonds are traded worldwide, and the most liquid types of bonds are U.S.-government guaranteed Treasurys, followed by German government-backed bonds. Since a 10-year U.S. Treasury bond pays a higher yield, institutions from across the globe are buying U.S. rather than German treasury bonds, depressing yields in the United States.
- Two Good Economic Surprises
- October Surprise May Be The Economy
- Economic Signs Are Fine Amid The Distractions
- Poverty Rate Dropped Again In 2019; A Sign Of Progress
- Stocks Dropped Last Week But Data Confirmed Economic Recovery
- Amid A Mixed Week For Stocks, A Strong Recommendation
- Is A Stock Bubble Bursting?
- S&P 500 Breaks Record For A Second Week
- S&P 500 Breaks New Record; Small Business Picture Is Different
- As If Coronavirus Never Hit, Retail Recovers
- Confirming Recovery Is Under Way
- Despite Grim Headlines, Stocks Rose Sharply -- Why?
- The Paradigm Shift In Valuing Stocks
- Retail Sales And Housing Starts In June Reveal Recovery's Shape
- Keeping Perspective In An Unreal Environment
- Economic Fundamentals Recovering As Stocks Surged For the Week
- Stocks Swing Wildly As Economic Recovery Begins
- Dog Days Of Summer In The Economy
- V-Shaped But Full Recovery Is Long Off
- Covid-19 Causes A Good Surprise
- The Epidemic Sets The Economy Back About Two Years
- Is This A New Bull Market?
- The Pandemic And Stocks
- Despite Disastrous Jobs Report, Stocks Surged 1.6% Friday