$Direxion Daily 20+ Year Treasury Bull 3X Shares ETF (TMF.US)$
I do not understand the American mindset rather than rising interest rates well. The economic indicators are too strong.
What should I do to stop spending?
I do not understand the American mindset rather than rising interest rates well. The economic indicators are too strong.
What should I do to stop spending?
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$Direxion Daily 20+ Year Treasury Bull 3X Shares ETF (TMF.US)$ The factor causing the rise in interest rates after the election is next year's Trump tariffs and concerns about fiscal measures. Although the tide will not change by the end of the year, the statement from yesterday's FOMC that there is no rush to cut interest rates has further strengthened the trend of bond price decline. Both tariffs and fiscal measures are not for this year but for next year. This means that the possibility of a rate cut after inflation concerns and high interest rates become a reality post-inauguration is quite low. In that case, it is natural for the rate-cut phase to end without happening. If the determining factor of the election is addressing inflation first rather than employment, even if employment is poor, interest rates will not be lowered. In addition, if tariffs exacerbate inflation, there will be even less reason for bonds to rise after the new year. Personally, I thought the opportunity for bonds would come after the end of the rate cut phase, so if the rate cut phase ends next year and the policy interest rate is expected to remain unchanged, expectations of a market high might fade, making the opportunity for bonds more visible. ^_^ However, there may be difficult times ahead where both a stock market decline and a bond market decline happen simultaneously, meaning it's going to be tough for both sides. (⁎⁍̴̆Ɛ⁍̴̆⁎) Beyond that is the arrival of high tariffs, high interest rates, inflation, and recession. Good job, Trump.
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$Direxion Daily 20+ Year Treasury Bull 3X Shares ETF (TMF.US)$ Selling bonds and buying stocks due to more rate cuts is no longer the trend; the onset of large-scale tariffs, concerns about future inflation, and massive fiscal stimulus have led to bonds being sold indiscriminately despite indicators prior to over a month of inauguration. There is no reason for such a significant drop in CPI indicators yesterday. Unless consecutive negative indicators beyond employment and sales arise, the market is likely to largely ignore and decline for the rest of the year. This is the state of affairs even before the inauguration. If substantial fiscal stimulus and tariff implementation occur after the inauguration, it is difficult to imagine anything other than further declines in bonds, even if they are somewhat factored in currently. Currently, stocks are gradually being invested in, and the promotion of cryptocurrencies is expected to accelerate the decline of US bonds. Some may have rough opinions that safe investments are in gold and BTC (very risky) now that inflation is weak and US bonds have the worst fiscal outlook, except when it comes to redeeming. This is a highly risky investment with high volatility. As bonds form the foundation, ideas like being oversold in bond ETFs and ready to rise soon are not relevant in my opinion...
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In December, expectations increase for a rate cut in the USA, with a significant decrease in yields following an expected CPI decline.
November 13, 2024 23:16 JST
Following the as expected October US Consumer Price Index (CPI), US bond yields decreased. The background was the increased speculation of a 25 basis points (bp, 1 bp = 0.01%) rate cut in December.
The sensitive 2-year bond yield in the USA briefly decreased by 9 bp to reach 4.25%. The 10-year bond yield decreased by about 5 bp to 4.38%.
The swap market has priced in about a 75% chance of an additional rate cut at the December meeting. This percentage was around 56% before the data release. The total expected rate cut by June next year is estimated to be about 60 bps in total.
Lindsay Rozner, Head of Multi-Sector Bond Investment Department at Goldman Sachs Asset Management, pointed out that with the core CPI meeting expectations, the US monetary authorities are heading towards a rate cut in December. She stated, "Given the slightly hot data seen in autumn, this statistics ease concerns of a slowdown in the pace of rate cuts."
November 13, 2024 23:16 JST
Following the as expected October US Consumer Price Index (CPI), US bond yields decreased. The background was the increased speculation of a 25 basis points (bp, 1 bp = 0.01%) rate cut in December.
The sensitive 2-year bond yield in the USA briefly decreased by 9 bp to reach 4.25%. The 10-year bond yield decreased by about 5 bp to 4.38%.
The swap market has priced in about a 75% chance of an additional rate cut at the December meeting. This percentage was around 56% before the data release. The total expected rate cut by June next year is estimated to be about 60 bps in total.
Lindsay Rozner, Head of Multi-Sector Bond Investment Department at Goldman Sachs Asset Management, pointed out that with the core CPI meeting expectations, the US monetary authorities are heading towards a rate cut in December. She stated, "Given the slightly hot data seen in autumn, this statistics ease concerns of a slowdown in the pace of rate cuts."
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$Direxion Daily 20+ Year Treasury Bull 3X Shares ETF (TMF.US)$
Trump is saying that he will carry out a large fiscal stimulus, but are there people willing to buy in a situation where interest rates are infinitely rising? Even central banks cannot buy government bonds due to their policy stance...
If bonds are issued at high interest rates, the economy will collapse.
Trump is saying that he will carry out a large fiscal stimulus, but are there people willing to buy in a situation where interest rates are infinitely rising? Even central banks cannot buy government bonds due to their policy stance...
If bonds are issued at high interest rates, the economy will collapse.
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$Direxion Daily 20+ Year Treasury Bull 3X Shares ETF (TMF.US)$ Before talking about FOMC, it seems strange that only the 30-year bond auction at this timing tonight is not a concern, and it is thought that people who do not even know that are buying based on the atmosphere. I honestly think it's weird as a premise before saying anything about the results.
If you seriously think that you can win against professionals (geniuses among geniuses all over the world) with such a simple idea just because there is a rate cut for sure in the future, then there's nothing more to be done.
If you seriously think that you can win against professionals (geniuses among geniuses all over the world) with such a simple idea just because there is a rate cut for sure in the future, then there's nothing more to be done.
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$U.S. 10-Year Treasury Notes Yield (US10Y.BD)$
Will interest rates continue to rise until america goes bankrupt? There was a demand for AI, which prevented an economic recession, but what if there was no demand for AI? What if there was no government employment before the election?
It would be bad if we had already entered stagflation long ago just because it didn't show up in the indicators, wouldn't it?
Will interest rates continue to rise until america goes bankrupt? There was a demand for AI, which prevented an economic recession, but what if there was no demand for AI? What if there was no government employment before the election?
It would be bad if we had already entered stagflation long ago just because it didn't show up in the indicators, wouldn't it?
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$U.S. 10-Year Treasury Notes Yield (US10Y.BD)$
Following the recent employment statistics, market expectations are leaning towards a rate cut. While short-term interest rates decrease in response to these rate cut expectations, long-term interest rates have actually increased taking into account the economic recovery due to the rate cut. Therefore, in the future, regardless of good employment statistics or the possibility of recession, as long as rate cut expectations exist, long-term interest rates are likely to keep rising. Furthermore, regardless of the presidential election results, significant fiscal stimulus is unavoidable, hence leading to further increase in long-term interest rates. Therefore, there is no scenario where long-term interest rates decrease anymore, and if they were to decline hypothetically, it would only happen in the event of a major crash in the American economy.
Following the recent employment statistics, market expectations are leaning towards a rate cut. While short-term interest rates decrease in response to these rate cut expectations, long-term interest rates have actually increased taking into account the economic recovery due to the rate cut. Therefore, in the future, regardless of good employment statistics or the possibility of recession, as long as rate cut expectations exist, long-term interest rates are likely to keep rising. Furthermore, regardless of the presidential election results, significant fiscal stimulus is unavoidable, hence leading to further increase in long-term interest rates. Therefore, there is no scenario where long-term interest rates decrease anymore, and if they were to decline hypothetically, it would only happen in the event of a major crash in the American economy.
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