{"id":31663,"date":"2024-08-30T02:04:51","date_gmt":"2024-08-30T02:04:51","guid":{"rendered":"https:\/\/www.writemyessays.app\/blog\/questions\/bond-market-what-types-of-variables-are-bond-investors-looking-at-to-explain-price-and-yield\/"},"modified":"2024-08-30T02:04:51","modified_gmt":"2024-08-30T02:04:51","slug":"bond-market-what-types-of-variables-are-bond-investors-looking-at-to-explain-price-and-yield","status":"publish","type":"questions","link":"https:\/\/www.writemyessays.app\/blog\/questions\/bond-market-what-types-of-variables-are-bond-investors-looking-at-to-explain-price-and-yield\/","title":{"rendered":"Bond Market : What types of variables are bond investors looking at to explain price and yield."},"content":{"rendered":"

1)       
\n<\/span><\/span><\/span>Explain background of Bond <\/p>\n

2)       
\n<\/span><\/span><\/span>What types of Variables are bond investors
\nlooking at <\/p>\n

3)       
\n<\/span><\/span><\/span>Explain price and Yeild<\/p>\n

<\/p>\n

Bond Market Update<\/span><\/p>\n

Last Updated: 29-Aug-24
\n15:14 ET | Archive<\/span><\/a><\/span><\/p>\n

See frequent updates
\nthat focus on today\u2019s bond market activity featuring an ongoing synopsis of
\ntreasury market news and events that could have an impact on interest and FX
\nrates. Bond market updates start with an overnight summary of Asia and Europe
\ntreasury session performance, news, and currency updates, in addition to a
\npre-market look at the U.S. dollar index, treasury futures, commodities, and
\neconomic data releases. After the open, get frequent updates including bond
\nmarket commentary, news, and currency performance throughout the day. After the
\nclose, get an in-depth summary of bond market activity for the day.<\/span><\/p>\n

 <\/span><\/p>\n

Treasury
\nMarket Summary<\/span><\/b><\/p>\n

29-Aug-24 15:14 ET<\/span>

\n<\/span>10-Yr: <\/span><\/b>-7\/32..3.867%.. <\/span>USD\/JPY: <\/span><\/b>144.85.. <\/span>EUR\/USD: <\/span><\/b>1.1079<\/span><\/span><\/p>\n

Upward Q2 GDP Revision
\nWeighs<\/span><\/b><\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>U.S. Treasuries ended
\nThursday with modest losses after a slide from opening highs. Treasuries opened
\nthe day just above their flat lines after a subdued night in global equity
\nmarkets. NVIDIA’s (NVDA) quarterly results were strong overall but failed to meet
\nsky high expectations. Treasuries slid from their starting highs after economic
\ndata released shortly after the open showed an upward revision to Q2 GDP (to
\n3.0% from 2.8%) and a decrease in weekly jobless claims (to 231,000 from
\n233,000). The post-data selling lifted yields on 10s and 30s past their highs
\nfrom yesterday, where the market bounced, recovering a portion of its losses as
\nthe day went on. The U.S. Treasury concluded this week’s mediocre note auction
\nslate with a soft 7-yr note sale. Crude oil recovered yesterday’s loss while
\nthe U.S. Dollar Index rose 0.3% to 101.34.<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Yield<\/span><\/b> <\/span>Check:<\/span><\/b><\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>2-yr: +2 bps to 3.89%<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>3-yr: +3 bps to 3.76%<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>5-yr: UNCH at 3.67%<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>10-yr: +3 bps to 3.87%<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>30-yr: +2 bps to 4.15%<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>News:<\/span><\/b><\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Fitch affirmed the AA+
\nrating for the U.S. with a Stable outlook.<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Atlanta Fed President
\n(FOMC voter) Bostic said that it may be time to cut rates, but he wants to see
\nmore data, according to Bloomberg.<\/span><\/i><\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Sweden’s Riksbank is on
\ntrack to cut rates two or three more times this year, according to Deputy
\nGovernor Bunge.<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>The Italian government
\nis expected to signal commitment to reducing its deficit-to-GDP ratio below the
\nEU’s 3.0% target in 2026.<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Chinese banks struggled
\nafter Bank of Communications reported poor results.<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Japan’s August Household
\nConfidence remained at 36.7 (expected 36.9).<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Australia’s Q2 Building
\nCapital Expenditure decreased 3.8% qtr\/qtr (last -0.9%), Q2 Plant\/Machinery
\nCapital Expenditure fell 0.5% qtr\/qtr (last 3.7%), and Q2 Private New Capital
\nExpenditure was down 2.2% qtr\/qtr (expected 0.9%; last 1.9%).<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>New Zealand’s August ANZ
\nBusiness Confidence jumped to 50.6 from 27.1.<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Eurozone’s August
\nBusiness and Consumer Survey rose to 96.6 from 96.0 (expected 95.8).<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Germany’s flash August
\nCPI was down 0.1% m\/m (expected 0.0%; prior 0.3%) and up 1.9% yr\/yr (expected
\n2.1%; last 2.3%).<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Spain’s flash August CPI
\nwas unchanged m\/m (expected 0.1%; last -0.5%), rising 2.2% yr\/yr (expected
\n2.4%; last 2.8%). August Core CPI was up 2.7% yr\/yr (last 2.8%). July Business
\nConfidence ticked up to -3.6 from -4.2.<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Today’s<\/span><\/b> <\/span>Data:<\/span><\/b><\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>The second estimate for
\nQ2 GDP was revised up to 3.0% from the preliminary estimate of 2.8% on the back
\nof an upward revision to consumer spending. The GDP Deflator was revised up to
\n2.5% from 2.3%.<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>The key takeaway from
\nthe report is that consumer spending was solid in the second quarter, exceeding
\nthe prior eight quarter average of 2.2%.<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Initial jobless claims
\nfor the week ending August 24 decreased by 2,000 to 231,000 while continuing
\njobless claims for the week ending August 17 increased by 13,000 to 1.868
\nmillion.<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>The key takeaway from
\nthe report is the steady standing of initial jobless claims, which remain well
\nbelow levels typically associated with an economy in recession.<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>The Advance Intl. Trade
\nin Goods deficit widened to $102.7 billion in July from an upwardly revised
\n$96.6 billion (from -$96.8 billion) in June, with exports roughly flat and
\nimports $6.1 billion more than June imports.<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>The key takeaway from
\nthe report is that the uptick in imports was led by industrial supplies and
\ncapital goods, which is what one would expect in a growing economy.<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Advance Retail
\nInventories were up 0.8% in July after increasing a revised 0.9% (from 0.7%) in
\nJune.<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Advance Wholesale
\nInventories were up 0.3% in July after increasing a revised 0.1% (from 0.2%) in
\nJune.<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Pending Home Sales were
\ndown 5.5% in July (Briefing.com consensus 1.2%) after increasing 4.8% in June.<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Weekly natural gas
\ninventories increased by 35 bcf for the second consecutive week.<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>$44 bln 7-year Treasury
\nnote auction results (prior 12-auction average):<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>High yield: 3.770%
\n(4.373%).<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Bid-to-cover: 2.50
\n(2.56).<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Indirect bid: 75.1%
\n(68.6%).<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Direct bid: 11.2%
\n(17.5%).<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Commodities:<\/span><\/b><\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>WTI crude: +1.8% to
\n$75.90\/bbl<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Gold: +0.9% to
\n$2560.40\/ozt<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Copper: +0.5% to
\n$4.23\/lb<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Currencies:<\/span><\/b><\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>EUR\/USD: -0.4% to 1.1079<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>GBP\/USD: -0.1% to 1.3170<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>USD\/CNH: -0.5% to 7.0943<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>USD\/JPY: +0.3% to 144.85<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>The<\/span><\/b> <\/span>Day<\/span><\/b> <\/span>Ahead:<\/span><\/b><\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>8:30 ET: July Personal
\nIncome (Briefing.com consensus 0.2%; prior 0.2%), Personal Spending
\n(Briefing.com consensus 0.5%; prior 0.3%), PCE Prices (Briefing.com consensus
\n0.2%; prior 0.1%), and Core PCE Prices (Briefing.com consensus 0.1%; prior
\n0.2%)<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>10:00 ET: final August
\nUniversity of Michigan Consumer Sentiment (Briefing.com consensus 67.8; prior
\n67.8)<\/span><\/p>\n

Auction
\nReaction<\/span><\/b><\/p>\n

29-Aug-24 13:12 ET<\/span>

\n<\/span>10-Yr: <\/span><\/b>-6\/32..3.867%.. <\/span>USD\/JPY: <\/span><\/b>144.84.. <\/span>EUR\/USD: <\/span><\/b>1.1080<\/span><\/span><\/p>\n

Auction Reaction<\/span><\/b><\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>U.S. Treasuries have
\nclimbed off session lows that were reached about two hours ago, but most tenors
\nremain in the red while the 5-yr note has returned to its flat line, making for
\na continuation of today’s outperformance. The market is holding near its rebound
\nhighs even though the just-completed $44 bln 7-yr note sale met soft demand, as
\nthe high yield (3.770%) tailed the when-issued yield by 0.9 basis points while
\nthe bid-to-cover ratio (2.50x) was below average (2.56x). Foreign demand
\nremained strong, however, as indirect takedown (75.1%) was comfortably above
\nthe prior 12-auction average (68.6%). The 7-yr note sale makes for an
\nunimpressive finish to this week’s note auction slate that started with a
\nstrong 2-yr note offering on Tuesday. On a side note, Fitch affirmed the
\nAA+ rating for the United States with a Stable outlook.<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Yield<\/span><\/b> <\/span>Check:<\/span><\/b><\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>2-yr: +2 bps to 3.89%<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>3-yr: +3 bps to 3.76%<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>5-yr: +1 bp to 3.67%<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>10-yr: +3 bps to 3.87%<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>30-yr: +2 bps to 4.15%<\/span><\/p>\n

Auction
\nOut<\/span><\/b><\/p>\n

29-Aug-24 13:04 ET<\/span>

\n<\/span>10-Yr: <\/span><\/b>-6\/32..3.865%.. <\/span>USD\/JPY: <\/span><\/b>144.98.. <\/span>EUR\/USD: <\/span><\/b>1.1082<\/span><\/span><\/p>\n

Treasury Auction Results<\/span><\/b><\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>$44
\nbln 7-year Treasury note auction:<\/span><\/b><\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Auction
\nresults:<\/span><\/b><\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>High
\nyield: 3.770% (When-Issued: 3.761%)<\/span><\/b><\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Bid-to-cover:
\n2.50<\/span><\/b><\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Indirect
\nbid: 75.1%<\/span><\/b><\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Direct
\nbid: 11.2%<\/span><\/b><\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Average results of
\nprevious 12 auctions:<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>High yield: 4.373%<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Bid-to-cover: 2.56<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Indirect bid: 68.6%<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Direct bid: 17.5%<\/span><\/p>\n

New
\nSupply<\/span><\/b><\/p>\n

29-Aug-24 11:29 ET<\/span>

\n<\/span>10-Yr: <\/span><\/b>-9\/32..3.883%.. <\/span>USD\/JPY: <\/span><\/b>145.27.. <\/span>EUR\/USD: <\/span><\/b>1.1074<\/span><\/span><\/p>\n

Treasury Auction Preview<\/span><\/b><\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>$44
\nbln 7-year Treasury note auction (results at 13:00 ET)<\/span><\/b><\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Prior auction results:<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>High yield: 4.162%<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Bid-to-cover: 2.64<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Indirect bid: 74.4%<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Direct bid: 16.8%<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Average
\nresults of previous 12 auctions:<\/span><\/b><\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>High
\nyield: 4.373%<\/span><\/b><\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Bid-to-cover:
\n2.56<\/span><\/b><\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Indirect
\nbid: 68.6%<\/span><\/b><\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Direct
\nbid: 17.5%<\/span><\/b><\/span><\/p>\n

Hovering
\nNear Lows<\/span><\/b><\/p>\n

29-Aug-24 10:16 ET<\/span>

\n<\/span>10-Yr: <\/span><\/b>-6\/32..3.865%.. <\/span>USD\/JPY: <\/span><\/b>145.26.. <\/span>EUR\/USD: <\/span><\/b>1.1070<\/span><\/span><\/p>\n

Hovering Near Lows<\/span><\/b><\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>U.S. Treasuries trade in
\nthe red after slipping from their opening levels. The market started the day
\nwith slim gains and relative strength in the 5-yr note, but the entire complex
\nretreated after receiving this morning’s batch of economic data, which was
\nheadlined by an upward revision to Q2 GDP (to 3.0% from 2.8%) and a decrease in
\nweekly jobless claims (to 231,000 from 233,000). The post-data retreat lifted
\nyields on 10s and 30s past their highs from Tuesday while the past 30 minutes
\nhave seen a small bounce off lows. Equities are off to a higher start with the
\nS&P 500 rising 0.5% as it overcomes a poor response to a quarterly report
\nand guidance from <\/span>NVIDIA<\/span><\/b> (<\/span>NVDA<\/span><\/b> 121.02, -4.59, -3.7%).<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>Yield<\/span><\/b> <\/span>Check:<\/span><\/b><\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>2-yr: +2 bps to 3.89%<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>3-yr: +2 bps to 3.75%<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>5-yr: UNCH at 3.67%<\/span><\/p>\n

\u00b7       
\n<\/span><\/span><\/span>10-yr: +2 bps to 3.86%<\/span><\/p>\n

\n

\u00b7       
\n<\/span><\/span><\/span>30-yr: +2 bps to 4.15%<\/span><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

1)        Explain background of Bond 2)        What types of Variables are bond investors looking at 3)        Explain price and Yeild Bond Market Update Last Updated: 29-Aug-24 15:14 ET | Archive See frequent updates that focus on today\u2019s bond market activity featuring an ongoing synopsis of treasury market news and events that could have an impact on […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","template":"","meta":[],"disciplines":[44],"paper_types":[],"tagged":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/questions\/31663"}],"collection":[{"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/questions"}],"about":[{"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/types\/questions"}],"author":[{"embeddable":true,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/comments?post=31663"}],"version-history":[{"count":0,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/questions\/31663\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/media?parent=31663"}],"wp:term":[{"taxonomy":"disciplines","embeddable":true,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/disciplines?post=31663"},{"taxonomy":"paper_types","embeddable":true,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/paper_types?post=31663"},{"taxonomy":"tagged","embeddable":true,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/tagged?post=31663"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}