Rising yields make borrowing more expensive for companies and consumers, and they make risky stocks less attractive to investors. Christine Romans explains.
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Why rising bond yields are spooking stocks
7 comments on Why rising bond yields are spooking stocks
7 responses to “Why rising bond yields are spooking stocks”
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are yields rising organically or out of a perceived disadvantage the bond sellers see because of the other stronger economics fundamentals that signals " hey, America is doing great, what can we do to attract them to loan us money, or consider bonds as a viable risk free investment?"
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I don't particularly grasp how one influences the other. How does the price of the 10 yr T-note affect the cost of other things like mortgage rates, corporate profits and auto loans? The fed sets the federal funds rate, is it because if investors can command more for the money they loan to the gov't (bonds), then…..that's were I fall off…is it because if the gov't has to pay out more, the Fed (a supposedly apolitical entity) will in turn, and in knee jerk fashion increase the federal funds rate or interest rates as a whole? hoping to recoup? Which comes first, the chicken or the egg?
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Hi CNN – go to hell. Thank You.
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Safest investment is under my mattress
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Noted
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U.S. Treasuries were unequivocally the "safest" investments
Now she says "maybe" the safestU.s. fiat and debt backed system is crumbling from within, and these so called "experts" know it
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Uncle Sam is broke, don't listen to her.
http://www.usdebtclock.org/index.html
