"rates pushing prices down..."

Discussion in 'Fixed Income' started by stevenpaul, Aug 10, 2021.

  1. I don’t think they are commenting on causality.
     
    #11     Aug 12, 2021
  2. SunTrader

    SunTrader

    #12     Aug 14, 2021
    murray t turtle and stevenpaul like this.
  3. %%
    Good points, for sure, words do have meaning.
    AND really, since when\ IS THE NEWS KNOWN FOR ACCURACY?? MR. Santelli, most likely knows better , so it maybe a bit of his way to shorten it for TV.
    LOOK how often so many of those clowns use, wrongly, ''overbought, oversold'' NOT calling Mr Santelli a clown.:D:D
     
    #13     Aug 26, 2021
  4. xandman

    xandman

    You failed to see the context. What he meant was yield demanded by investors is going higher (due to rising inflation expectations) thus making the present value of bonds worth less.


    Bond investors/traders don't primarily watch the price series. They think about basis points over benchmark for a given duration and credit risk. That's also how they quote each other.
     
    Last edited: Aug 27, 2021
    #14     Aug 27, 2021
  5. they're talking about fair values of non-bond assets, where present values are lowered when rates are higher since it needs to be discounted assuming continuous compounding.
     
    #15     Aug 27, 2021
  6. %%
    Good thing about stocks/ETFs another S&P , another Moodys US debt downgrade may help them; but bond sellers would not look so kindly on that, most likely + i would not blame them......................................................................................IF i kept on borrowing 137%, 157%+/. of what i made \LOL i could get a loan but not cheaply, even if the collateral was good.:caution::caution::caution::caution::caution::caution:,:cool:
     
    #16     Oct 12, 2021