Another day, another strong economic report in the US and bonds yields are..

Jay Soloff

Argonath Financial

Another day, another strong economic report in the US and bonds yields are... dropping? First off, initial jobless claims dropped 14,000 this week to 289,000. More importantly, the 4-week moving average declined 4,000 to 293,500. That's the lowest average since February of 2006! So with a strengthening economy you'd expect yields to rise, right? Wrong. In fact, 10-year Treasury yields dropped to 2.42%, the lowest level since summer of 2013. So why are bonds seemingly moving opposite of what's usual? In a nutshell, it's the geopolitical risk. In particular, the massing of Russian troops at the Ukraine border is causing some concern. The US is also considering air support in Iraq, and the cease fire is about to end between Israel and Gaza. Basically, there's enough concern globally for investors to seek the safety of US bonds. (VIEW LINK)

Jay Soloff
Jay Soloff
Research Analyst
Argonath Financial

I'm an investments analyst for a US-based independent investment research firm. My focus is on economics, options, and all types of stocks, but especially tech, Internet, and renewable energy companies. I have experience as a options market...


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