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1. It tells us the rate hikes are ending. It's just 3 rather than 6.
2.;The main reason why this is happening is recession.
3. This will stabilise US market but I don't see much upside as earnings are going to be poor and valuations remain high.
How this is going to help is give some relief to emerging market and developing countries whose bonds and debts markets are under stress....that was why Sri Lanka and Pakistan have to go to IMF.
The other high debt countries like Malaysia who under Najib borrowed alot can breathe a little easier. Malaysia also benefitted from higher oil prices.
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(This post was last modified: 26-07-2022, 07:46 AM by
sgbuffett.)
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Bond yield is not analysed in this manner.
You got see the 2 years bonds.
If you are the bond investors, will you buy 2 years bond or 10 years bond.
It signals us recession is on the card.
The gap difference between the bond tells $$$ flowing in or flowing out from bond market.
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(This post was last modified: 26-07-2022, 07:51 AM by
RiseofAsia.)
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