Friday’s Market Minute: Breakdown Of Yields, Gold, And The Nasdaq

Treasury yields have been one of the reasons underpinning the latest moves, since nominal rates do not express the true negative yield on long bonds adjusted for term inflation.

As rates have fallen over the past week or so, tech names have not responded in the manner with which they had over the last 18 months.

If inflation is non-transitory, then why would foreign and domestic institutions buy long-duration bonds in what is expected to be a rising rate environment? It appears the preference for liquidity and safety is a small price to pay against the backdrop equity indices setting new highs.

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