Posts tonen met het label 10 year. Alle posts tonen
Posts tonen met het label 10 year. Alle posts tonen

vrijdag 27 augustus 2021

donderdag 24 juni 2021

10 Year Break-Even Inflation Rate Vs. CPI

The 10 year break-even inflation rate = 10 year bond - 10 year tips. It represents a measure of expected inflation and is a leading indicator for the CPI.

donderdag 9 juni 2016

Deutsche Bank is going down

This is Deutsche Bank's stock.

And these are 10 year U.S. treasuries.


Let's zoom in to 2016:


That's a very nice correlation right? So if the 10 year U.S. treasuries break downwards, what do you get? We get a plunge in Deutsche Bank's stock. The question is: "Will the 10 year U.S. yield plunge?". I say yes, because we see that the U.S. is going into a recession with very slow GDP growth. Also, Janet Yellen will need to use negative interest rates to combat the plunging yields. If Janet raises interest rates, we will see a flattening yield curve and even lower 10 year U.S. yields. Or Janet needs to initiate QE4, which will make 10 year bond yields go up again against a weakening dollar.

None of this will happen soon, so I expect Deutsche Bank to go the way of Lehman Brothers soon. Watch out, because we are hitting downside resistance here.