Tuesday, December 14, 2010

U.S. and UK bond yields fell to historic lows, Germany.

<P> As investors gradually began to believe, the major western economies will have to face slow growth and inflation slow down the situation, hedge funds have flocked to the bond market, the United States, Germany, Britain has recently bond yields have been pushed .historic lows. .</ P> <P> analysts expect the central banks of these economies through the purchase of bonds will have to re-stimulate the economy, the quantitative easing policy or to the general trend. .</ P> <P> British hedge funds flock to German government bonds </ P> <P> 8 24, U.S. 10 year Treasury yield down to 2.47% for the March 2009 financial crisis, the lowest since the peak .point, 30-year bond yield was also reduced to a historical low of 3.53%. .</ P> <P> not only the needs of long-term U.S. Treasury rapid warming, the United Kingdom, Germany, also pushed bond yields down to record lows. .German 10-year yield closed at 2.18% for 24 of the record low. .Some analysts expect the German 10-year yield fell further below 2%. .</ P> <P> UK bond yields have plummeted, the benchmark 10-year bond yields fell on Tuesday following a record low of 2.866 percent after touching 2.837 percent on Wednesday is a new low. .</ P> <P> In addition, global economic growth prospects are highly relevant to global stock markets and crude oil and other commodity markets also dropped sharply. .High risk aversion of investors flock to safe-haven currency yen also promote the yen against the U.S. dollar rose to a 15-year high. .</ P> <P>, analysts say, these changes reflect the market is expected the central bank had to buy more government bonds to boost global growth, and not until early 2012 that the tightening of monetary policy. .</ P> <P> "There is a view of the world's investors, though we do not necessarily moving toward Japanese-style recession, but it is generally agreed that the slow recovery with inflation slowing, meaning the central bank almost no pressure on interest rates." .Deutsche Bank senior investment adviser Gerald Lucas (GeraldLucas) said. .</ P> <P> Bernanke's speech this week, five high-profile </ P> <P> Treasury yields falling Friday to Fed Chairman Ben Bernanke delivered a policy speech about even more global attention. .</ P> <P> Bernanke at the Fed Jackson Hole on Friday (JacksonHole) meeting on monetary policy statement on further to explain the Fed's interest-rate meeting earlier decision, namely the use of maturity .re-mortgage bonds to purchase bonds in order to avoid shrinking their balance sheet size. .</ P> <P> Fed in the "lightweight" quantitative easing monetary policy decisions continue to purchase U.S. Treasury bonds lower, but also pushing up demand for the bond market, leading to a lot of money out of stocks and into bonds market. .Some Fed officials fear that this policy may undermine market confidence and counterproductive. .</ P> <P> So Bernanke's speech on Friday is likely to try to convince the market that the Fed policy change does not reflect the pessimistic outlook on the economy. .</ P> <P> is worth noting that foreign investors demand for U.S. Treasury bonds surged. .</ P>.

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