Understanding US Treasury & Yields
Just when the whole world coming for a rout, only US treasury yields shoot up to multi-months high. Investors might wondering why this happen. Some of our readers are posting these kind of question to us. We think this article might helps. US Treasury = US Government Bond Actually, we are referring to US Government 10 Years Bond. Generally, a government bond is issued by a national government (in this case US) and is denominated in the country's own currency (USD). Bonds issued by national government in foreign currencies are normally referred to as sovereign bonds. The yield required by investors to loan funds to governments reflects inflation expectations and the likelihood that the debt will be repaid. Also, government bonds were usually referred to as risk-free bonds , because governments could easily devalue their currencies or raise taxes to redeem the bond at maturity. The Story of US Treasury Yields... Just like Base-Lending-Rate (BLR) for Malaysia, everything from mortgag...