equity lo entha aruchukunna...debt market is always crucial...to decide economy fate...

[dasari4kntr]

ee debt ki derivative add  adithe...it become a weapon...

 

Yields Surge After Fed Signals Lofty Rates

By Eric Wallerstein

Yields on U.S. government debt are surging early Thursday after Federal Reserve Chairman Jerome Powell dictated that interest rates will reach a higher level than previously expected.

The upward pressure on yields is sending bond prices tumbling.

• The 10-year US Treasury yield rose to 4.193% from 4.059% late Wednesday.
• The yield on the two-year note recently traded at 4.722% from 4.568%.

Shorter-term rates—which are more sensitive to monetary policy expectations—are gaining more rapidly than longer-term yields. That's further inverting the yield curve, one of Wall Street's tried-and-true recession indicators.

U.S. Treasury YieldsSource: Tullett Prebon

Nov. 2022Nov. 33.94.04.14.24.34.44.54.64.74.8%U.S. Two-Year TreasuryNoteU.S. 10-Year TreasuryNote

U.S. 10 YEAR TREASURY NOTEBX:TMUBMUSD10Y(XTUP)

4.18%0.08▲

U.S. 2 YEAR TREASURY NOTEBX:TMUBMUSD02Y(XTUP)

4.73%0.12▲

 

 

[AnandaVivek]

Koncham telugu lo cheppu bro..okka mukka artham ayithe eedchi kottu

[dasari4kntr]

18 minutes ago, AnandaVivek said:

Koncham telugu lo cheppu bro..okka mukka artham ayithe eedchi kottu

equity ante stocks...debt ante bonds...

equity lo stocks perigina padina...company ko..or shareholder ko problem...anthe...equity market doenst effect other things...but it get easily influenced by other things...

debt market ala kaadhu...debt is debt for a single person to entire nation... there are so many debts starting from credit card to mortgage, education loans, corporate loans, national debt..etc and also..it has some influence on national spending... companies or treasury issues bonds that means they are increasing their debt..once they get money..they use it for spending... in the above scenario...treasury is getting short term debt easily than long term debt...short term debt lo loan  repayment kooda short term ee kada...

derivatives are swaps (interest rate swap, credit default swap, cross currency swap..)...very powerful..kind of betting..big companies use this to reduce their interest rate burdens or cross currency exchange rate burdens...some companies sell these swaps above their financial level...which end up collapse...if any loan taker or loan giver defaults...

 

[AnandaVivek]

6 minutes ago, dasari4kntr said:

equity ante stocks...debt ante bonds...

equity lo stocks perigina padina...company ko..or shareholder ko problem...anthe...equity market doenst effect other things...but it get easily influenced by other things...

debt market ala kaadhu...debt is debt for a single person to entire nation... there are so many debts starting from credit card to mortgage, education loans, corporate loans, national debt..etc and also..it has some influence on national spending... companies or treasury issues bonds that means they are increasing their debt..once they get money..they use it for spending... in the above scenario...treasury is getting short term debt easily than long term debt...short term debt lo lo repayment kooda short term ee kada...

derivatives are swaps (interest rate swap, credit default swap, cross currency swap..)...very powerful..kind of betting..big companies use this to reduce their interest rate burdens or cross currency exchange rate burdens...some companies sell these swaps above their financial level...which end up collapse...

 

Basic question..equity/stocks padipothe bhayam tho spending padipothundi kada bhayya..appudu economy kudisinatte ga indirect effect tho

[yemdoing]

24 minutes ago, dasari4kntr said:

equity ante stocks...debt ante bonds...

equity lo stocks perigina padina...company ko..or shareholder ko problem...anthe...equity market doenst effect other things...but it get easily influenced by other things...

debt market ala kaadhu...debt is debt for a single person to entire nation... there are so many debts starting from credit card to mortgage, education loans, corporate loans, national debt..etc and also..it has some influence on national spending... companies or treasury issues bonds that means they are increasing their debt..once they get money..they use it for spending... in the above scenario...treasury is getting short term debt easily than long term debt...short term debt lo loan  repayment kooda short term ee kada...

derivatives are swaps (interest rate swap, credit default swap, cross currency swap..)...very powerful..kind of betting..big companies use this to reduce their interest rate burdens or cross currency exchange rate burdens...some companies sell these swaps above their financial level...which end up collapse...if any loan taker or loan giver defaults...

 

Time block chesi chaduvtha 

[dasari4kntr]

Just now, AnandaVivek said:

Basic question..equity/stocks padipothe bhayam tho spending padipothundi kada bhayya..appudu economy kudisinatte ga indirect effect tho

companies raise investment in two ways for their new ventures...

1. Stock profit reinvestment

2. Issuing bonds

if company A got profit, it will reinvest the profit for new venture, otherwise they go for debt market....

for example...see the below example...this company A  have net loss...but to survive in market or competition they has to raise funds...so in this case bonds is the only option... its do or die..situation...in this process...

remember...one person spending is another person income...balance of spending is the key...

[dasari4kntr]

7 hours ago, yemdoing said:

Time block chesi chaduvtha 

see this one too…

 

[former]

1 hour ago, dasari4kntr said:

see this one too…

 

In short Recession is inevitable in coming days and not sure how bad it is.

Just ready hold tough in the middle of storm to survive.

[dasari4kntr]

11 minutes ago, former said:

In short Recession is inevitable in coming days and not sure how bad it is.

Just ready hold tough in the middle of storm to survive.

did you watch this video…? the narrator was famous hedge fund company ceo…and quite popular in financial world…

[kevinUsa]

1 minute ago, dasari4kntr said:

did you watch this video…? the narrator was famous hedge fund company ceo…and quite popular in financial world…

Bro corporate debt market or govt debt market 

[dasari4kntr]

2 minutes ago, kevinUsa said:

Bro corporate debt market or govt debt market 

both…govt debt market is treasury bonds , municipal bonds..etc they are safe..

corporate debt market is less safe…you need to follow moody or snp ratings…and there are many secuirty types like senior, junior..etc

[former]

1 hour ago, dasari4kntr said:

did you watch this video…? the narrator was famous hedge fund company ceo…and quite popular in financial world…

Yes I watched it. I guess you wrote the same in one of the previous posts. 

The video is very informative and need to learn a lot.

[dasari4kntr]

Treasury Yields Fall as Investors Seek Safety. ‘People Are Very Scared Right Now.’

Treasury yields were falling sharply Friday.

One explanation: investors see Treasuries as a haven following the stock meltdown of SVB Financial SIVB –60.41%  (ticker: SIVB), parent of Silicon Valley Bank.

SVB said Wednesday night it had sold securities from its portfolio for a $1.8 billion loss after a decline in deposits, while also announcing plans to raise capital via an offering of common and preferred stock, according to Barron’s. The shares lost 60% on Thursday, and other bank stocks sold off as well, though not nearly as precipitously. Trading in SVB’s stock was halted Friday morning.

“People are very scared right now,” says Andrew Brenner, head of international fixed income at NatAlliance Securities, adding that investors are worried about that situation spreading to other banks. “They are trying to think what’s the next one.”

The two-year Treasury’s yield was at 4.62% on Friday morning, down sharply from where it closed Thursday at 4.9%. It had been above 5% earlier in the week. Bond yields and prices move inversely.

Brenner also attributed some of the fall in bond yields to short sellers having to cover their positions, especially at the front end of the curve—pushing up prices and lowering yields.

The 10-year Treasury was at 3.76%, versus the 3.92% where it settled at the close on Thursday.

Meanwhile, economic data released Friday were somewhat mixed. The unemployment rate rose to 3.6% from 3.4% and wage growth slowed last month. That helps support the case that inflation is at least moving in the right direction.

Yung-Yu Ma, chief investment strategist at BMO Wealth Management, says the bond market is pricing in sharply higher recession risk, pressuring long-term yields.

“While a gradual and controlled economic slowdown is preferred, the market now sees greater prospects for an economy that will soon slam on the brakes,” he says.

Nonfarm payrolls, however, increased by 311,000 in February, above the consensus estimate of 227,500, but down from a much bigger gain of 504,000 in January, according to FactSet.

“The uptick in the unemployment rate to 3.6%, coupled with slowing wage growth, helped underpin the Treasury market with yields edging lower upon the release of the payroll report,” Quincy Krosby, chief global strategist at LPL Financial, said in a release.

The Federal Open Market Committee, which sets rate policy, is set to gather later this month on the 21st and 22nd.

A BofA Global Research report Friday said it is a close call between an interest-rate increase of 25 or 50 basis points, but it expects the Federal Reserve to land on 25 basis points. Aside from the nonfarm payroll number, “other labor market data softened in February,” the report observed.

[Pandubabu]

On 11/3/2022 at 9:55 AM, dasari4kntr said:

ee debt ki derivative add  adithe...it become a weapon...

 

Yields Surge After Fed Signals Lofty Rates

By Eric Wallerstein

Yields on U.S. government debt are surging early Thursday after Federal Reserve Chairman Jerome Powell dictated that interest rates will reach a higher level than previously expected.

The upward pressure on yields is sending bond prices tumbling.

• The 10-year US Treasury yield rose to 4.193% from 4.059% late Wednesday.
• The yield on the two-year note recently traded at 4.722% from 4.568%.

Shorter-term rates—which are more sensitive to monetary policy expectations—are gaining more rapidly than longer-term yields. That's further inverting the yield curve, one of Wall Street's tried-and-true recession indicators.

U.S. Treasury YieldsSource: Tullett Prebon

Nov. 2022Nov. 33.94.04.14.24.34.44.54.64.74.8%U.S. Two-Year TreasuryNoteU.S. 10-Year TreasuryNote

U.S. 10 YEAR TREASURY NOTEBX:TMUBMUSD10Y(XTUP)

4.18%0.08▲

U.S. 2 YEAR TREASURY NOTEBX:TMUBMUSD02Y(XTUP)

4.73%0.12▲

 

 

Entana year end ki 1 year tbonds 6% antava ?

[dasari4kntr]

2 minutes ago, Pandubabu said:

Entana year end ki 1 year tbonds 6% antava ?

ippudu 5% …need to check the graph.. how soon it came to 5% ani…