blog

Latest from the Quantamize Blog

Before doves flew...The FED FREAK OUT FADES with 10-year yield back to pre-dovish levels

Apr 16, 2019

We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.
We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.

 

  • When the Fed shifted to its more dovish tone on March 20th, the recession freak-out beganOh me, oh my!!
  • The 10-year bond yield was 2.588% that day just before the Fed doves flew
  • Amid the Fed freak-out, interest rates fell all the way to 2.338% within a week, financial Armagedon is upon us
  • The VIX jumped from 13.56 to 16.48 amid the unease

 

US 10-Year Bond Yield since March 19th

us 10 year

Source:Bloomberg

  • In the ensuiing weeks, the US economic data was positive, especially jobs data
  • Investors came to believe the Fed when it said it would be patient 
  • Investors' fear slowly ebbed and risk appetitie returned as it became clear a recession was not imminent
  • Today the 10-year bond yield is at 2.589% and the VIX has fallen all the way to 12.09
Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS
Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS