Trying to get a handle on bond yields. on page 139, first full paragraph starting with Bonds are also... you mention that rising expectations of inflation or an actual increase in inflation outstrips the fixed income of bonds coupon payments, thereby reducing the value of the bonds and boosting the yield to maturity. How does this happen? do Bond traders sell bonds making yields rise?? I am not understanding how bond traders manipulate yields?
Second instance;
Page 141, paragraph starting with Sometimes, however, yield curves... you mention, "at this stage, traders of 10- and 30-year treasury securities are certain the economy has reached bottom and begin to project higher inflation and interest rates in the distant future, THEREBY RAISING LONG-TERM YIELDS. (not yelling) How are they raising long term yields?
hi ashraf...yes strange indeed...could i get your opinion on were u see usdcad possibly going.. im thinkn on adding to my usd position for a possible bounce back...do u fore see more downward pressure on usd?also can i get you veiws on gold..i see its up 14bucks..thanks
Chloe, strange action. i mentioned possiblty of end of quarter rebalancing earlier. Also could be jitters ahead 6 powers' Thursday talks w/ Iran which is officials called "beginning of difcult process".
hey ashraf ...just wondering how we get a bearish inventory report on crude but yet crude turns positive an usd falls under 1.0745..from 1.0800..thanks
TB, not sure what you mean but Aussie did gain later on robust retail sales yet markets are reluctant to extend oush above 0.8830s ahead of the bulk of US data this week. EUR has been dragged by jawboning as mentioned in my IMTs
Achilles, bilateral FX, was simply determined by the percentage increase in one currency vs. another for that year. Then, i added those individual returns for each currency. As for gold aggregate annual returns, i took golds annual percentage change against each currency then added it together.
Sorry in advance for my ignorance, I just purchased the book and I have a couple of questions about some of the terminology. In chapter 1 the notion of Golds aggregate annual return vs currencies is not clear to me and in chapter 3 the term Bilateral Currency Returns is also not clear to me. Could someone explai/define these terms to me in relation to how they are used in the book?
Ashraf Could you please give your opinion on why the Aussie is not doing the "usual" thing and be tracking the EURO? Is it due to ECB jaw boning? and that they are doing as others in trying to lift the dollar, or do you see other fundamentals causing this. I have not seen a change like this in these currencies for long time.
Try publishing this in the UK weekend papers: Traders bet BankofEngland will raise rates to 6.25% --highest since 1… https://t.co/GWXrTEAk4R(1 year ago)
Poor start to a slow market day as Ezone PMIs disappoint. Im still keeping an eye on the rare (-2%) USD-GOLD combo,… https://t.co/UyRzWsRbs7(1 year ago)
-5% YTD is not good, while -7% from the year highs can be tough. Gold traders have their eyes fixated on this for n… https://t.co/NV5UMKsfNo(1 year ago)
ما وراء هبوط الدولار مع الذهب و من منهما يتمكن الارتداد؟
موعدنا الآن في غرفة شركة إكس أم لجلسة الأسواق
https://t.co/Y7tD0RxCS2
@XM_COM (1 year ago)
Jobless claims > 300k before next FOMC meeting would be ideal for Fed to make up for any CPI upside surprise (1 year ago)
"Cook & Eat at Home" scheme may come next to defeat UK inflation... (1 year ago)
Earlier in the week gold selloff was attributed to smaller than exp China EASING. Metal is now holding v well despi… https://t.co/ZW9cmXTPWW(1 year ago)
Thanks very much for your response. I hope this is not too dumb of a question, but how do you add percentages in this context?
Thanks again for your time,
Ah
Trying to get a handle on bond yields. on page 139, first full paragraph starting with Bonds are also...
you mention that rising expectations of inflation or an actual increase in inflation outstrips the fixed income of bonds coupon payments, thereby reducing the value of the bonds and boosting the yield to maturity. How does this happen? do Bond traders sell bonds making yields rise?? I am not understanding how bond traders manipulate yields?
Second instance;
Page 141, paragraph starting with Sometimes, however, yield curves...
you mention, "at this stage, traders of 10- and 30-year treasury securities are certain the economy has reached bottom and begin to project higher inflation and interest rates in the distant future, THEREBY RAISING LONG-TERM YIELDS. (not yelling) How are they raising long term yields?
raft, thanks
Ashraf
Thanks for all your hard work and dedication.
Achilles, bilateral FX, was simply determined by the percentage increase in one currency vs. another for that year. Then, i added those individual returns for each currency. As for gold aggregate annual returns, i took golds annual percentage change against each currency then added it together.
Ashraf
Thanks very much for your time,
Ah
Could you please give your opinion on why the Aussie is not doing the "usual" thing and be tracking the EURO? Is it due to ECB jaw boning? and that they are doing as others in trying to lift the dollar, or do you see other fundamentals causing this. I have not seen a change like this in these currencies for long time.