Sunday, February 28, 2021
Only Bitcoin Market News
Advertisement
  • Home
  • Bitcoin
  • Market
  • Cash
  • Price
  • Beginners
  • Gold
  • Private
  • Cryptos
  • investors
  • Technical
  • Crash
  • spam
  • stock
  • Blockchain
  • Videos
  • Home
  • Bitcoin
  • Market
  • Cash
  • Price
  • Beginners
  • Gold
  • Private
  • Cryptos
  • investors
  • Technical
  • Crash
  • spam
  • stock
  • Blockchain
  • Videos
Only Bitcoin Market News
No Result
View All Result

Market Outlook: Bonds and bitcoin hint at bubble territory

2 weeks ago
in investors
2 min read
Market Outlook: Bonds and bitcoin hint at bubble territory
Share on FacebookShare on Twitter


  • Treasury yields have started to move aggressively higher 
  • Bitcoin hit $50k for the first time and continues to soar 

Yield hikes start to worry

Having banged the inflation drum for some months, last Monday I noted that everyone’s suddenly talking about it. Now rates are really starting to worry. We are witnessing a sharp sell-off in rates with yields moving aggressively higher, which could spread into trouble in other asset classes like stocks, foreign exchange and even cryptos. This creates problems mainly because of just how quickly the move is happening. Treasury yields had their biggest gain in three months on Tuesday, with spread on ten year treasuries rising 9 basis points to hit the highest since February above 1.3 per cent. The 2s10s spread widened to 1.18 per cent, the widest since 2016. Breakevens keep moving higher – inflation expectations are becoming unanchored.

Predictions of bond defaults mean it is important to consider the potential effect on funds and companies. Become a subscriber to read more.

Bond villain: managing default risk in your portfolio

I’ve expounded many times before on how the vast amount of pro-cyclical fiscal stimulus, ultra-loose monetary policy, pent-up demand and a savings glut will create a powerful inflationary impetus this year. I’ve also stressed many times that this environment, coupled with the Fed’s new average inflation targeting – which explicitly lets the economy run ‘hot’ –  could lead to inflation expectations becoming unanchored, just as they did in the 1970s. If inflation does start to move up the Fed may need to act. Allowing inflation to take off could eat away at real gains, but it will also help erase deficits. The question the Fed – and Treasury – need to ask themselves is whether deficits matter. 

Knock-on impact on stocks

The ProShares UltraShort 20+ Year Treasury ETFs, which tracks double the inverse (-2x) of the daily performance of the US Treasury 20+ Year Bond Index for a single day, is exploding higher and is now up almost 20 per cent this year. Vix March futures also advanced during a mixed session on Wall Street that left the Dow up 0.2 per cent but the S&P 500 flat and small cap Russell 2000 0.7 per cent lower. Higher rates hit bond proxies like real estate, utilities and health, whilst the chief reflation trade winners, energy and financials, rose. 

Stocks in Europe are sliding a touch this morning after Tuesday’s pause. Concern about interest rates moving up as quickly as they are is starting to worry some investors. It’s not the absolute yield that matters but the rate of change which is catching investors off guard. UK inflation nudged up to 0.7 per cent in January from 0.6 per cent in December as the cost of furniture and household goods, restaurants and hotels, food, and transport all rose. This is just the start though as the roaring 20s leads to roaring inflation by the…



Read more:Market Outlook: Bonds and bitcoin hint at bubble territory

Related articles

3 money management CEOs overseeing $150 billion break down why bitcoin will flourish

3 money management CEOs overseeing $150 billion break down why bitcoin will flourish

February 28, 2021
Bitcoin’s energy use is ‘staggering’ and a worry for big investors, Kleinwort

Bitcoin’s energy use is ‘staggering’ and a worry for big investors, Kleinwort

February 27, 2021
Tags: [object Object]Bitcoinbitcoin news todaybondsBubbleHintMarketOutlookTerritory

Related Posts

3 money management CEOs overseeing $150 billion break down why bitcoin will flourish

3 money management CEOs overseeing $150 billion break down why bitcoin will flourish

by Bitcoin Market
February 28, 2021
0

After breaching a record-high of $58,000 last Sunday, bitcoin slid to $47,000 on Friday. Despite regulatory uncertainty, three CEOs...

Bitcoin’s energy use is ‘staggering’ and a worry for big investors, Kleinwort

Bitcoin’s energy use is ‘staggering’ and a worry for big investors, Kleinwort

by Bitcoin Market
February 27, 2021
0

Bitcoin uses a "staggering" amount of energy each year, the chief investment officer of Societe Generale's UK private bank...

Would a Rule Breaker Invest in Bitcoin? | The Motley Fool

Would a Rule Breaker Invest in Bitcoin? | The Motley Fool

by Bitcoin Market
February 27, 2021
0

Jim Surowiecki calls it a failed currency. Aaron Bush calls it the ultimate Rule Breaker. Who is right? Could...

Bitcoin at $50,000: The Good, the Bad, and the Unknown | The Motley Fool

Bitcoin at $50,000: The Good, the Bad, and the Unknown | The Motley Fool

by Bitcoin Market
February 26, 2021
0

Bitcoin (CRYPTO:BTC) is becoming more mainstream as fintech companies and investing firms adopt the cryptocurrency But some investors believe...

World’s first bitcoin ETF soars past $500 million in assets under management

World’s first bitcoin ETF soars past $500 million in assets under management

by Bitcoin Market
February 26, 2021
0

TipRanksBillionaire Ken Griffin Pulls the Trigger on These 2 Penny StocksRisk and reward are the yin and yang of...

Load More

Trend Now

  • Trending
  • Comments
  • Latest
Crypto-Powered Social Media Platform Voice Planning Launch for July 4 | CryptoGlobe

Crypto-Powered Social Media Platform Voice Planning Launch for July 4 | CryptoGlobe

June 8, 2020
J.K. Rowling Twitter Storm shows the Crypto Ecosystem Needs to Mature – CityAM

J.K. Rowling Twitter Storm shows the Crypto Ecosystem Needs to Mature – CityAM

May 19, 2020
Argo Blockchain boosts mining margins in July

Argo Blockchain boosts mining margins in July

August 5, 2020
Institutional investors see Bitcoin holding US$50,000 suggests ETP provider

Institutional investors see Bitcoin holding US$50,000 suggests ETP provider

February 18, 2021
Bitcoin boom backstopped by central banks’ easy-money policies

Bitcoin boom backstopped by central banks’ easy-money policies

February 4, 2021
5 Cryptocurrency Staking Providers – A Review | Hacker Noon

5 Cryptocurrency Staking Providers – A Review | Hacker Noon

January 30, 2021
Argo Blockchain reports higher revenues and margins in August amid strong Bitcoin

Argo Blockchain reports higher revenues and margins in August amid strong Bitcoin

0
Bitcoin daily chart alert – Bullish chart pattern develops – May 19

Bitcoin daily chart alert – Bullish chart pattern develops – May 19

0
Calvin Ayre Invests in True Reviews: A New Take on Consumer Review Sites Built on the

Calvin Ayre Invests in True Reviews: A New Take on Consumer Review Sites Built on the

0
J.K. Rowling Twitter Storm shows the Crypto Ecosystem Needs to Mature – CityAM

J.K. Rowling Twitter Storm shows the Crypto Ecosystem Needs to Mature – CityAM

0
Crypto.com’s MCO Visa Cards Are Now Shipping In Europe – Fintech Singapore

Crypto.com’s MCO Visa Cards Are Now Shipping In Europe – Fintech Singapore

0
Elon Musk tried to explain Bitcoin to JK Rowling on Twitter and this happened

Elon Musk tried to explain Bitcoin to JK Rowling on Twitter and this happened

0
Argo Blockchain reports higher revenues and margins in August amid strong Bitcoin

Argo Blockchain reports higher revenues and margins in August amid strong Bitcoin

February 28, 2021
5 Reasons Bitcoin Is Superior to Gold

5 Reasons Bitcoin Is Superior to Gold

February 28, 2021
Grayscale’s Ethereum Trust Premium Follows Bitcoin Sibling Into Flipping Negative

Grayscale’s Ethereum Trust Premium Follows Bitcoin Sibling Into Flipping Negative

February 28, 2021
The $282 Million Awakenings: 120 Bitcoin Block Rewards from 2010 and 2011 Woke Up

The $282 Million Awakenings: 120 Bitcoin Block Rewards from 2010 and 2011 Woke Up

February 28, 2021
Bitcoin buyers punished by surging bond yields

Bitcoin buyers punished by surging bond yields

February 28, 2021
5 Things I Wish I Knew Before Getting Into Crypto

5 Things I Wish I Knew Before Getting Into Crypto

February 28, 2021
  • Contact Us
  • Terms of Use
  • Cookie Privacy Policy
  • Privacy Policy
  • DMCA

© 2020 MarketForBitcoin.com

No Result
View All Result
  • Home
  • Bitcoin
  • Market
  • Cash
  • Price
  • Beginners
  • Gold
  • Private
  • Cryptos
  • investors
  • Technical
  • Crash
  • spam
  • stock
  • Blockchain
  • Videos

© 2020 MarketForBitcoin.com

  • bitcoinBitcoin(BTC)$45,478.00-4.24%
  • bitcoin-cashBitcoin Cash(BCH)$471.00-4.47%
  • binance-coinBinance Coin(BNB)$220.92-2.16%
  • bitcoin-goldBitcoin Gold(BTG)$25.40-5.26%
  • bitcoin-privateBitcoin Private(BTCP)$0.603-18.98%
  • blocktixBlocktix(TIX)$0.0200.00%