3min chapter

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Liquidity Spiral In The Bond Market Is Causing "Tremendous Stress" | Jim Bianco

Forward Guidance

CHAPTER

Bond Market Liquidity

Jim Boulden: How do you explain the absolutely abysmal performance of the bond market? He says that from a mathematical standpoint, that I'm going to use these ugly terms that we have in the bond market called duration and convexity. Every time interest rates move 100 basis points, 1%, how much does the price move? When the coupons are very low or negative in the case of Europe in Japan, the durations are extremely long,. And you don't have a coupon to cushion you.

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