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Bond market

National Debt

How the debt ceiling fight puts the indispensable U.S. Treasurys market at risk

by Matt Levin
May 26, 2023
The $24 trillion Treasury bond market plays an important role in the global financial system. Is there any viable alternative?
"U.S. Treasurys are the safest asset anywhere, even in the case of default," says Yesha Yadav from Vanderbilt. This is why essentially the entire global financial system buys U.S. government debt whenever there's a panic.
Mandel Ngan/AFP via Getty Images
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Banks in Turmoil

How the Fed's rate hikes spelled trouble for banks like SVB

by Sabri Ben-Achour
Mar 21, 2023
Why bonds lose value when the Fed hikes interest rates and what that has to do with banks.
Silicon Valley Bank was among the financial institutions for which rising interest rates on bonds spelled trouble.
Patrick T. Fallon/AFP via Getty Images
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The bond market yield curve is inverted — which some economists think foreshadows a downturn

by Sabri Ben-Achour
Mar 2, 2023
The yield for a two-year note is roughly a whole percentage point higher than the yield on the 10-year Treasury right now. And that often precedes a recession.
A 10-year bond theoretically locks up your money for 10 years in exchange for some yield or other. But its worth depends on the what the future looks like with inflation, interest rates and the economy.
VallarieE/Getty Images
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January's strong jobs report lifted bond yields. Why's that?

by Sabri Ben-Achour
Feb 3, 2023
Bond investors look at the jobs report for clues about wage growth and inflation.
The job gains were focused on nonhousing services, analysts say, which the Federal Reserve sees as a driver of inflation.
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The Federal Reserve is unwinding its bond-buying program. Will that help deflate the inflation balloon?

by Nancy Marshall-Genzer
Aug 24, 2022
The Fed uses its buying power in the bond market to raise or lower interest rates by manipulating how much money is available in the economy.
The Fed blew up the "balloon" of the economy during the pandemic by, in part, ratcheting up its bond buying and flooding financial markets with money.
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Treasury bond yields are rising. Here's what that tells us.

by Sabri Ben-Achour
Sep 28, 2021
The yield on the 10-year Treasury note surged to its highest level in three months this morning.
Inflation could be one of the reasons bond buyers are demanding higher yields.
Angela Weiss/AFP via Getty Images
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What the bond market can tell us about the pace of economic recovery

by Sabri Ben-Achour
Feb 23, 2021
Rising bond yields are an optimistic sign, even though the Fed says a real recovery isn't right around the corner.
When bond yields go up quickly, it can spook the stock market. But stocks aren't the whole story.
Spencer Platt/Getty Images
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Bond yields are lower than during the financial crisis

by Amy Scott
Mar 9, 2020
But that may not be signaling that the economic damage from the coronavirus will be as bad as the Great Recession.
Traders work on the floor of the New York Stock Exchange Monday.
Spencer Platt/Getty Images
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COVID-19

Investors seek safe havens as markets, bond yields fall

by Nancy Marshall-Genzer
Mar 4, 2020
The yield on the benchmark 10-year Treasury dipped below 1% Tuesday.
With yields this low, you’d think investors would be running away from bonds. But not everyone is.
Spencer Platt/Getty Images
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A guided tour of the yield curve

by Justin Ho
Aug 15, 2019
The federal government sells more than a dozen different kinds of bonds. They all have very different purposes.
Traders work before the closing bell at the New York Stock Exchange where the Dow Jones Industrial Average dropped 800 points after talk of an inverted yield curve on August 14, 2019 in New York City.
Johannes Eisele/AFP/Getty Images
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