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> but now interest rates are starting to come up again This appears to not matter at all in the "new normal". The 10y yield tapped 2.93% yesterday and still, e
by daxorid 9y ago
> but now interest rates are starting to come up again
This appears to not matter at all in the "new normal". The 10y yield tapped 2.93% yesterday and still, everyone made a mad dash to bid up equities.
It should be noted that while the Fed is reducing its balance sheet this year, the BOJ, ECB, and PBOC's easing efforts are resulting in a net increase in global CB-led asset purchases.
Kuroda alone will likely be enough to keep risk assets elevated, regardless of what interest rates do.
- sempron64 9y agois 2.93% really such a scary rate? It's still historically very low.
- AnimalMuppet 9y agoWell, it's a big change in a short time from 2.4%. It's more the first derivative[1] that's scary than the actual value. Of course, the first derivative is only scary if you're expecting it to continue for a while. That's forecasting, or guesswork, or something besides just observing the current rate. [1] "Derivative" in the calculus sense, not in the financial instrument sense.
- jeffreyrogers 9y agoYeah, we're certainly in an interesting environment. It's funny to think that to anyone who entered the financial industry after 2008 this is normal.