re: Day trading Nifty & Banknifty Futures
in short the yields are showing the signs of qe tapering will be done sooner than later and the rate will rise after some time
as US is the largest economy it will effect whole world's economy ....
Treasury yields are a common term used to describe the total amount of money you make on Treasury notes or bonds. They are sold by the Treasury Department to pay for the debt. The most important thing to realize is that Treasury yields go down when there is a lot of demand for Treasury products, which are considered ultra-safe investments. That's why Treasury yields move in the opposite direction of Treasury bond values.
so the need for safe (not speed) is going on
as very well know how INR moves it certainly is not safest product available
Treasury Yields Predicted The 2008 Financial Crisis:
In January 2006, the yield curve started to flatten. This meant that investors did not require a higher yield for longer term notes. On January 3, 2006 the yield on the 1-year note was 4.38%, a bit higher than the yield of 4.37% on the 10-year note. This was the dreaded inverted yield curve. It predicted the 2008 recession. In April 2000, an inverted yield curve also predicted the 2001 recession. When investors believe the economy is slumping, they would rather keep the longer 10-year note than buy and sell the shorter 1-year note, which may do worse next year when the note is due.
How Treasury Yields Affect the Economy:
As Treasury yields increase, so do the interest rates on consumer and business loans with similar lengths. Investors like the safety and fixed returns of bonds. Treasuries are the safest, since they are guaranteed by the U.S. government. Other bonds are riskier, so must return higher yields to attract investors. As Treasury yields rise, so do interest rates on other bonds and loans to remain competitive.
As investors bid up yields on Treasuries in the secondary market, it also mean that the Treasury Department itself will be forced to pay a higher interest rate to attract buyers in future auctions. Over time, these higher rates can start to increase demand for Treasury products. That's why higher Treasury yields can increase the value of the dollar.
so the need for safe (not speed) is going on
as very well know how INR moves it certainly is not safest product available
Treasury Yields Predicted The 2008 Financial Crisis:
In January 2006, the yield curve started to flatten. This meant that investors did not require a higher yield for longer term notes. On January 3, 2006 the yield on the 1-year note was 4.38%, a bit higher than the yield of 4.37% on the 10-year note. This was the dreaded inverted yield curve. It predicted the 2008 recession. In April 2000, an inverted yield curve also predicted the 2001 recession. When investors believe the economy is slumping, they would rather keep the longer 10-year note than buy and sell the shorter 1-year note, which may do worse next year when the note is due.
How Treasury Yields Affect the Economy:
As Treasury yields increase, so do the interest rates on consumer and business loans with similar lengths. Investors like the safety and fixed returns of bonds. Treasuries are the safest, since they are guaranteed by the U.S. government. Other bonds are riskier, so must return higher yields to attract investors. As Treasury yields rise, so do interest rates on other bonds and loans to remain competitive.
As investors bid up yields on Treasuries in the secondary market, it also mean that the Treasury Department itself will be forced to pay a higher interest rate to attract buyers in future auctions. Over time, these higher rates can start to increase demand for Treasury products. That's why higher Treasury yields can increase the value of the dollar.
as US is the largest economy it will effect whole world's economy ....
