Trade war doubts and central bank loosening have done the unthinkable – brought down bond yields and driven up equities

//Trade war doubts and central bank loosening have done the unthinkable – brought down bond yields and driven up equities

Trade war doubts and central bank loosening have done the unthinkable – brought down bond yields and driven up equities

2019 has seen relentless rallies in both bond and equity markets. Bond yields – or interest rates to you and me – fall as bond prices rise, and this usually reflects some combination of falling growth and inflation expectations. In contrast, equities generally like stronger growth. Therefore, bonds and equities usually move in opposite directions.So how do we explain that US equity indices are at record highs – and global ones not far off – while US 10-year bond government bond yields are back…

Article by [author-name] (c) South China Morning Post - Read full story here.

By | 2019-07-12T23:30:15+00:00 July 12th, 2019|Business|Comments Off on Trade war doubts and central bank loosening have done the unthinkable – brought down bond yields and driven up equities