The Compound and Friends

The Real Reason Treasury Yields Rose With Nick and Jessica, Election Bets and Market Vol With Callie Cox

34 snips
Oct 29, 2024
Nick Colas and Jessica Rabe, co-founders of DataTrek Research, bring their market expertise to the table alongside Callie Cox, Chief Market Strategist at Red Holt's Wealth Management. They delve into the surprising rise of Treasury yields amidst Federal Reserve cuts, exploring labor market trends and wage dynamics. The trio discusses how political betting might shape financial markets ahead of the 2024 elections. Additionally, they analyze the effects of volatility on investment strategies and the significance of tech valuations, offering a comprehensive view of current economic landscapes.
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INSIGHT

Fed Policy and Treasury Yields

  • The Federal Reserve cut interest rates, but the 10-year Treasury yield rose.
  • This raises concerns about a potential policy mistake by the Fed.
INSIGHT

Economic Strength and Yields

  • The rise in 10-year yield is likely due to a stronger-than-expected U.S. economy.
  • Data like initial jobless claims and GDP growth support this view.
INSIGHT

Deficits and Yields

  • The argument that deficits are driving up yields is weak.
  • Historical data shows yields have remained stable despite rising debt-to-GDP ratios.
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