Credit Markets
WSJ Section: Credit Markets offers coverage of credit/debt security markets. These include coverage of
treasury securities, corporate debt including junk and foreign bonds, municipal debt, Brady bonds, etc.
Our particular emphasis is on the 10-year Treasury note (T10Y). This is because: Changes in the T10Y yield offer insights into the market’s expectation of future inflation since this
1) security’s price moves mainly to news about future inflation
The T10Y yield is used as a benchmark for long-term debt contracts
2) Was the yield on the T10Y up/down the previous day? Why?
3) Treasuries serve as risk-free security proxies
4) The spread between short- and long-term treasury yields (i.e. the yield curve) can help forecast
business cycles
5) The spread between similar maturity corporate bonds and Treasuries offer an estimate of the
default spread or risk premium.
Ask yourself :- Was the yield on the T10Y up/down the previous day? Why?
Was the yield on the T10Y up/down the previous day? Why?
please read the attached file, we only have to cover credit markets reports.