首页
外语
计算机
考研
公务员
职业资格
财经
工程
司法
医学
专升本
自考
实用职业技能
登录
外语
Government bond markets are supposed to be the accountants of the financial world: calm, steady and rational. They are not suppo
Government bond markets are supposed to be the accountants of the financial world: calm, steady and rational. They are not suppo
admin
2018-06-06
43
问题
Government bond markets are supposed to be the accountants of the financial world: calm, steady and rational. They are not supposed to frighten the horses. But in the days following June 7th, bond investors had a traumatic experience. The yield on the ten-year Treasury bond rose from 4.96% that day to reach 5.33% during trading on June 13th before closing just below 5.2%. What makes the slump in bond prices all the odder is that Treasury bonds are normally regarded as the risk-free asset, the one that investors buy when they are really worried. What could have prompted the sell-off?
Inflation
One thing that could cause investors to flee government bonds would be an unexpected rise in inflation. Higher inflation devastates the value of fixed-income assets, as investors found to their cost in the 1970s. But this does not look like an inflation scare. Real yields have caused the vast bulk of the move: inflation expectations have moved up by only around a tenth of a percentage point.
Strong Growth
Investors may well have decided that American growth will be stronger than they had previously expected. But, in the absence of inflation, faster growth need not be bad for government bonds: higher tax revenues will make it easier for the government to service the debt. Alternatively, unexpectedly strong growth ought to be good news for equities, yet the stock market has also fluctuated wildly.
Rate Cuts
Another potential explanation is that the markets have given up on rate cuts from the Federal Reserve this year. But the futures market suggests this hope has been dwindling for some time. Global monetary policy is generally being tightened. However, this should not necessarily be bad news for long-dated bonds, if investors believe(as they seem to)that central banks will be successful in containing inflation.
This suggests that economic fundamentals may not be the primary cause for the sell-off. Big market moves like this tend to occur when investors shift their positions in a hurry. In this case, it looks as if some bond bulls decided to throw in the towel.
Hedging Behavior of the Mortgage Issuer
The hedging policies of mortgage issuers may also have played a part. Because most Americans have fixed-rate mortgages, issuers find they tend to get repaid early when bond yields fall: they hedge this risk by buying Treasury bonds. When rates rise, borrowers are far less likely to repay: that causes mortgage issuers to sell their bonds. The effect can be to exacerbate short-term moves in bond prices.
Asian Central Banks
The big question, however, is whether Asian central banks have lost their appetite for American Treasuries. Part of the reason for the rise in yields was a disappointing auction of ten-year bonds, with foreign investors buying just 11% of the issue. Asian central banks had been buying Treasury bonds with their foreign-exchange reserves in an attempt to prevent their currencies from appreciating too rapidly against the dollar. Some analysts have estimated that these purchases had pushed bond yields between a half and a full percentage point below the level they would otherwise have reached.
The result was that yield curves were "inverted"—long yields were below short-term rates. When he was Fed chairman, Alan Greenspan described this state of affairs as a "conundrum": such curves had traditionally been a harbinger of recession, but perhaps Asian central bank policies meant this signal was no longer valid.
Whoever has been selling Treasury bonds, the result is that the conundrum has disappeared: yield curves are now sloping upwards.
Which of the following statements best summarizes the main idea of the passage?
选项
A、Government bond markets frighten the horses.
B、The reason of the bond market shock and the sell-off
C、How to hedge investors’ risk when market fluctuates.
D、Asian central banks’ influence on American government bond market.
答案
B
解析
转载请注明原文地址:https://kaotiyun.com/show/ObSO777K
本试题收录于:
NAETI中级口译笔试题库外语翻译证书(NAETI)分类
0
NAETI中级口译笔试
外语翻译证书(NAETI)
相关试题推荐
PolandissomewhatanewdestinationforChinesetourists,andWarsaw,thecapitalcity,isanimportantbusinesscenterwith___
ThehappiestpeopleintheworldmayliveinScandinavia,anewstudysuggests.That’saccordingtotheUnitedNationsGeneralA
Thereisawidespreadconsensusthatweshouldrespecttheindependence,sovereignty,unityand______integrityofeverynation.
Chinaisthetopsourcecountryofinternationalstudentsintheworld.Recentstatisticshaveshowna【C1】______trendforChine
Chinaisthetopsourcecountryofinternationalstudentsintheworld.Recentstatisticshaveshowna【C1】______trendforChine
Theoffice,laboratory,andmuseumaresituatedatthetopofthehillinwhichtheycommandafineview.
Thebrightredcolorofalobster’scookedshellisconsideredauspicious,makingitastapleduringChinesefestivalsandatwe
ThegovernmentisgettingnothingdonebecauseBrexitoccupiesmostoftheirconsiderablecapacityforinternecinewarfare.
ThegeneralmanagerdemandedthejobwillbecompletedbeforetheSpringFestivalholidays.
随机试题
贫血性梗死常发生于
A、清晨使用B、餐前使用C、睡前使用D、餐后使用E、餐中使用胃黏膜保护药应()。
爆炸性粉尘环境危险区域范围主要根据(),以及同类企业相似厂房的运行经验确定。
“出口日期”栏:()。“经营单位”栏:()。
经国务院批准,2011年开展地方政府自行发债试点的地区是()。Ⅰ.北京市Ⅱ.上海市Ⅲ.浙江省Ⅳ.深圳市
“蒙太奇”手法是指影视拍摄中()。
学校社会工作者小李为小学生提供小组服务,针对煤气使用、交通出行、游泳等日常生活中的安全隐患进行教育,提高学生的安全意识。从学龄儿童的特点看,该小组的主要目的是()。
关于公安机关督察机构的权限,下列表述错误的是()。
在考生文件夹下,“samp1.accdb”数据库文件中已建立三个关联表对象(名为“职工表”、“物品表”和“销售业绩表”)和一个窗体对象(名为“fTest”)。试按以下要求,完成表和窗体的各种操作:将窗体fTest中名为“bTitle”的控件设置为“特殊
Honeybeepopulationsdeclinedby13.6%overthewinter,accordingtoasurveyofbeekeepersacrossEngland.Lossesweremostsev
最新回复
(
0
)