Why Yields Can Rise After a Rate Cut
When people say “interest rates dropped,” they usually mean central bank policy rates (like the Fed cutting rates).
But bond yields (like US10Y) are set in the open market, based on supply/demand and expectations about inflation, growth, and future rate paths.
Rate cuts can be inflationary: Lower borrowing costs can stimulate spending and growth, which raises inflation expectations → investors demand higher yields.
Market front-running: If the cut was already priced in, traders may rotate out of bonds (selling pushes prices down, yields up).
When people say “interest rates dropped,” they usually mean central bank policy rates (like the Fed cutting rates).
But bond yields (like US10Y) are set in the open market, based on supply/demand and expectations about inflation, growth, and future rate paths.
Rate cuts can be inflationary: Lower borrowing costs can stimulate spending and growth, which raises inflation expectations → investors demand higher yields.
Market front-running: If the cut was already priced in, traders may rotate out of bonds (selling pushes prices down, yields up).
ノート
トレード終了: 利益確定目標に到達
Targets for both yields and bond prices has been delivered this week!
Overall bearish bias is still in motion.
Lookout for the next review for next week which i will go over the low hanging fruits and price predictions
UK, London
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これらの情報および投稿は、TradingViewが提供または承認する金融、投資、取引、またはその他の種類の助言もしくは推奨であることを意図したものではなく、またこれらに該当するものでもありません。詳細は利用規約をご覧ください。