🔥IMPORTANT🔥
🤯 The YIELDS of BONDS in the U.S. keep RISING despite the announcements of TRADE AGREEMENTS
What is the reason for this and why could it be something POSITIVE for financial markets
👉 As we know, an increase in bond yields is NEGATIVE for stocks and #Bitcoin:
🔻 When the yield of a Treasury bond rises, bonds become more attractive than stocks.
🔻 This causes a rotation of money from stocks to bonds → decreases the demand for stocks → prices fall.
🔻 Furthermore, the yield of bonds is a benchmark for interest rates throughout the economy.
🔻 If the yield rises, interest rates rise.
🔻 Companies that need to take out loans to grow or expand pay more for that money. This is one of the reasons why BANKS adjusted their credit conditions (You have a post about this on my profile)
