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/biz/ - Business & Finance


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58438683 No.58438683 [Reply] [Original]

trying to understand what does it mean when the 10 year yield go up

this means that you get paid more to hold government bonds with 10 year expiration

so what the fuck does this mean? if the yields go up, it means that the government is not selling their bonds, so no one wants their crap and they have to raise yields, at some point the yield is attractive enough and it gets bought

once enough demand racks up then the yield starts going down again

so if yields go up it means people are buying risk on assets

if yields go down it means people are scared and are buying the bonds (so shit like TLT goes up)

so if yields go up it means the economy is great because people want to buy the NASDAQ and shit instead of bonds because they sense no risk incoming?

so we are not going to have a recesion? the economy is great? no unemployment and no inflation means that the people wants to buy risk on asset which is why the 10 year yield is going back up and almost 5%, so what does this mean now then? what the fuck is this useful for in terms of trying to predict what happens next?

holy shit why is this so complex, fucking dogshit

>> No.58438849

>>58438683
>so if yields go up it means people are buying risk on assets
From here on its wrong
People dont want to lock up their dollar for an insane period

>> No.58438856

>>58438849
yes, but if you are not buying bonds, then what are you buying? because tic toc, inflation is eating your savings, which means they typically buy the sp500