More pain in Bondland

By Avalon Team | September 21, 2023 |

Bonds are having a bad day. In the aftermath of yesterday’s meeting of the Federal Reserve, rates are moving higher causing both stocks and bonds to move lower.

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The Trouble with Bonds

By Avalon Team | September 20, 2023 |

Whatever the Federal Reserve’s current and future decisions are regarding interest rates, it’s an important reminder that the Fed only controls the direction of short-term interest rates. The market controls the longer end of the curve. U.S. Treasury bond yields are a function of three factors: term premium, inflation, and economic growth expectations. Term premium,…

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A Story About Japan, the U.S. Dollar, & Gold

By Avalon Team | December 21, 2022 |

Investors woke up to a major macro surprise Tuesday morning when the Bank of Japan announced a de-facto rate hike by allowing the yield on their 10-Year Treasury to reach .50%. Although the Bank of Japan (BOJ) didn’t actually raise rates, the net result is the same. What the BOJ did was allow the 10-Year…

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