The Bond Market Is Still Liquid
Bonds still have plenty of buyers.
By Fisher Investments Editorial Staff, 11/11/2022
Recent headlines have touted the Bank of Japan (BoJ) and Japanese insurers selling Treasurys—on top of the Fed’s slowly unwinding its quantitative easing (QE) purchases—and worried about a dearth of buyers drying up liquidity in the critical US Treasury market.[i] Some argue it risks a crisis. But this isn’t the first time such worries have cropped up. And, like in previous times when bond market liquidity fears surfaced, we think they hold relatively little water. Mostly we see the pessimism of disbelief at work here, not rising financial distress.
WSJの観測記事に踊らされる愚民ｗ
Now, Japan’s Treasury reductions have coincided with rising US rates. But Japanese fund flows didn’t drive them—for every seller, there is a buyer. What matters is what price they are willing to part with and pay, respectively. That, in our view, stems mostly from inflation, inflation expectations and the extent of rate hikes—bond markets’ main drivers everywhere. Yesterday’s inflation report underscores this, as yields plunged on the news.
The Bond Market Is Still Liquid
Bonds still have plenty of buyers.
By Fisher Investments Editorial Staff, 11/11/2022
Recent headlines have touted the Bank of Japan (BoJ) and Japanese insurers selling Treasurys—on top of the Fed’s slowly unwinding its quantitative easing (QE) purchases—and worried about a dearth of buyers drying up liquidity in the critical US Treasury market.[i] Some argue it risks a crisis. But this isn’t the first time such worries have cropped up. And, like in previous times when bond market liquidity fears surfaced, we think they hold relatively little water. Mostly we see the pessimism of disbelief at work here, not rising financial distress.
WSJ의 관측 기사에 놀아나는 우민 w
Now, Japan’s Treasury reductions have coincided with rising US rates. But Japanese fund flows didn’t drive them—for every seller, there is a buyer. What matters is what price they are willing to part with and pay, respectively. That, in our view, stems mostly from inflation, inflation expectations and the extent of rate hikes—bond markets’ main drivers everywhere. Yesterday’s inflation report underscores this, as yields plunged on the news.