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10 year yield and 30 year yield narrowing to 12 base point


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#1 q4wer

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Posted 16 May 2018 - 05:53 PM

People are talking about this phenomenal.  

 

10 year yield and 30 year yield narrowing to 12 base point, and  10 year yield is about 3.097 now.

 

It happened before, and each time it happened , it was followed by big stock market crash like in 2008.  I wish we have some discussion on the board, why it will destine to crash the market, if not, why it happened in the past every time.  Thanks!!!



#2 kssmibotm

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Posted 16 May 2018 - 06:53 PM

There were at least a dozen contributors to the 2008 market crash.  To cherry pick one of those out and say it will lead to a crash now is just completely ________.  You fill in the blank. giveup.gif



People think the Holy Grail is something looked for but never found. In fact, it is something often found but rarely recognized.

#3 q4wer

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Posted 16 May 2018 - 08:14 PM

I don't understand the reason behind, why the 10 year yield is as high as today.   Big banks can easily earn a lot of money, to pay it?   Or money pool is shallow ?



#4 Data

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Posted 16 May 2018 - 10:33 PM

The yield would be higher but the Treasury has been shifting the borrowing to shorter-term debt for some time to protect asset bubbles.

 

https://www.wsj.com/...hort-1510782803

 

The five-year yield is almost 3 percent.  



#5 Data

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Posted 17 May 2018 - 07:38 AM

Treasury has also been spending down its cash balance by 80 billion dollars.  They are buying up old debt and issuing new debt without adding to the debt limit.