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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts -- Ignore unavailable to you. Want to Upgrade?


To: rimshot who wrote (19353)2/25/2021 8:43:13 PM
From: Sun Tzu  Respond to of 97412
 
There are two very different scenarios that result in higher bond yields. Finance, and really all human affairs, are context sensitive. Yes there are times that the yields are rising because the economy is strong and growing and that means more demand for the bonds and that extra demand results in higher yields.

Then there is now where every central banker is printing money like there is no tomorrow. The bond holder are losing their confidence in the paper money and are refusing to accept the t-bills. As a result of this falling demand for treasuries, the government (or the auctioneers) have to offer higher yields to make up for the risk of holding the paper.

So there you have it. Two very different scenarios both leading to higher yields.