$Direxion Daily 20+ Year Treasury Bull 3X Shares ETF (TMF.US)$
I don't understand the minds of american people more than the interest rates. The indicators are too strong.
What should I do to stop spending?
I don't understand the minds of american people more than the interest rates. The 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 factors leading to the rise in interest rates after the election, such as next year's Trump tariffs and concerns about fiscal mobilization, are unlikely to change by the end of the year. However, the statement from yesterday's FOMC that there is no rush to cut rates has further intensified the trend of bond sell-off. Tariffs and fiscal mobilization are not for this year, but for next year. Therefore, the possibility of rate cuts after inflation concerns and high interest rates become a reality is quite low, which is natural. In that case, it seems inevitable that the rate cut phase will end. If the determining factor of the election is actually inflation control rather than employment, even if employment is poor, interest rates will not be lowered. In addition, if tariffs and inflation deflation exacerbate the situation, there will be no further material for bond price increases after the turn of the year. Personally, I was thinking that the opportunity for bonds would come after the end of the rate cut phase next year, and if there is an expectation that the policy interest rate will not be raised or lowered, the prospects of high stock prices will fade, and the opportunity for bonds will become visible. ^_^ However, before that, there may be tough times when both stocks and bonds fall simultaneously. (⁎⁍̴̆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 with rate cuts and buying stocks is no longer at the level it used to be. Despite the massive tariff, future inflation concerns, and huge fiscal stimulus, we are now entering a phase where bonds are being sold without regard to indicators, even more than a month before taking office. There is no reason for such a drop in the CPI index yesterday. Unless there is a continuous stream of negative indicators other than employment and sales, the market will likely ignore any drops for the rest of the year. This situation even before taking office. If there is a full-fledged fiscal stimulus and tariff implementation after taking office, it's hard to imagine anything other than further decline in bonds, even if there is some adjustment already factored in. Stocks are also gradually rising now, and the promotion of cryptocurrencies is expected to accelerate the decline in US bonds. Even though there are radical opinions like investing securely from bonds to gold and BTC (very risky), apart from cases where weak inflating and worst fiscal US bonds are being redeemed, it's a completely risky investment with high volatility. Since bonds form the basis, ideas like being sold too much in bond ETFs and possibly going up soon won't work, I think...
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Anticipating a December interest rate cut in the USA, bond yields plummeted significantly due to the as-expected Consumer Price Index (CPI).
November 13, 2024 23:16 JST
Following the as-expected October Consumer Price Index (CPI), the yield on US bonds decreased. The background is the heightened expectation of a 25 basis point (bp, 1 bp = 0.01%) interest rate cut in December.
Sensitive to the US financial policy, the 2-year bond yield temporarily decreased by 9 bps, reaching 4.25%. The 10-year bond yield decreased by approximately 5 bps 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 expected total rate cut by June of next year is around 60 bps.
Lindsay Rosner, Head of Multi-Sector Bond Investment at Goldman Sachs Asset Management, noted that "With core CPI as expected, the US monetary authorities are moving towards a rate cut in December." "Given the slightly hot data that has been continuing this fall, this statistics eases concerns of a slowdown in the pace of rate cuts."
November 13, 2024 23:16 JST
Following the as-expected October Consumer Price Index (CPI), the yield on US bonds decreased. The background is the heightened expectation of a 25 basis point (bp, 1 bp = 0.01%) interest rate cut in December.
Sensitive to the US financial policy, the 2-year bond yield temporarily decreased by 9 bps, reaching 4.25%. The 10-year bond yield decreased by approximately 5 bps 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 expected total rate cut by June of next year is around 60 bps.
Lindsay Rosner, Head of Multi-Sector Bond Investment at Goldman Sachs Asset Management, noted that "With core CPI as expected, the US monetary authorities are moving towards a rate cut in December." "Given the slightly hot data that has been continuing this fall, this statistics eases 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 there will be a large fiscal stimulus, but is there anyone willing to buy in a situation where interest rates are infinitely rising? Even the central bank cannot buy government bonds due to its policy stance...
If you keep issuing bonds at high interest rates, the economy will collapse.
Trump is saying that there will be a large fiscal stimulus, but is there anyone willing to buy in a situation where interest rates are infinitely rising? Even the central bank cannot buy government bonds due to its policy stance...
If you keep issuing bonds 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 the FOMC, it seems strange that there are people who buy based on the atmosphere without even knowing that the 30-year bond auction tonight should be a concern at this timing. Honestly, I think it's strange as a premise before discussing the results.
If you seriously think that you can win against professionals (geniuses among geniuses worldwide) with such a simple idea just because there is a rate cut guarantee in the future, then there is nothing to be done.
If you seriously think that you can win against professionals (geniuses among geniuses worldwide) with such a simple idea just because there is a rate cut guarantee in the future, then there is nothing 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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