Money Velocity Vs. Bond Yield

This page is created to monitor the Money Zero Maturity Velocity (MZM velocity) Vs. 10 Year U.S. Treasuries.

Historically, both are correlated. If money velocity picks up (blue chart), 10 Year U.S. Treasury Yields will rise (red chart).

 

 

Money Velocity Picking Up?

There are rumors that money velocity is picking up. As I said before, money velocity is very important to watch as it is correlated to U.S. Treasury Yields. If money velocity goes up, yields go up.

We will discuss 2 things:

1) Is GDP going up?

2) Is MZM growth slowing down?

Go here to find out.

Velocity of MZM slowing down

In one of my previous articles I monitored the velocity of MZM, to see if treasuries were likely to go up or down. The new numbers of velocity of MZM are out today at 1.434 (Q1 2012), down from 1.451 (Q4 2011). To see what this means for your portfolio, go to: Velocity of MZM going down.

An analysis of MZM Velocity and 10 Year US Bond Yields

I recently discovered (autodidacticly) that MZM velocity correlates well with 10 Year US Bond Yields. To see the analysis go to: Treasuries are a bad deal