'Draghi', and 'Why people are opting for bonds' are the key topics in today's discussion with Nicole Elliott, Private Investor and Technical Analyst, when she joined Zak Mir, Technical Analyst for Zaks Traders Cafe, and Mike Ingram, Strategist for BGC Partners, on the Tip TV Finance Show.
Key Points:
"2-yr government paper Schatz: Yields are still pointing south, the fact that we are in negative territory is not new, what matters now is the deposit rate"
"...now with lousy business proposals and people with flaky credit ratings, you don't want to lend to them, so you park more money in the central bank, the deposit rate is absolutely key, if the deposit rate is less than inflation then the commercial bank will lose money"
"....difference with the Schatz is that you are not being taxed as the nominal value is going up....that's why people are opting to buy the paper rather than be taxed by the central bank"
"Bund has stopped at the 50% retracement, has slowed down and now we are turning south again,....... could hold here for 6 months, nothing in this chart suggesting the downtrend has come to an end"
"Portugal 10 year - was yielding 16%, had a back up last month, stopped at the 50% level, new ceiling at 4.5%, one of several EU countries without a workable government, if yields are 300 times what Germans are currently at 3% versus 0, haven't got a hope in hell"
We are not authorised by the Financial Conduct Authority of England and Wales. The information and/or data on this website is provided by us and any data providers which may be used by us for your general information and use only and is not intended for trading purposes or to address your particular financial or other requirements. In particular, the information and/or data on the website:
(1) does not constitute any form of advice (financial, investment, tax, medical, legal, spread -betting or otherwise); and (2) does not constitute any inducement, invitation or recommendation relating to any of the products listed or referred to; and (3) is not intended to be relied upon by you in making (or refraining to make) any specific investment, placing any bet or making any other decision; and (4) has not been issued or approved by Tip TV for the purposes of section 21 of the Financial Services and Markets Act 2000 (as amended from time to time).
Opinions expressed by speakers in the videos, writers of the blogs are only opinions and not expert advice. These opinions do not necessarily agree with those held by Tip TV, its directors, agents or employees who disclaim any intent to make betting, securities or securities markets recommendations. The value of investments and the income derived from them may fall as well as rise. APPROPRIATE EXPERT INDEPENDENT ADVICE SHOULD BE OBTAINED BEFORE MAKING ANY INVESTMENT, PLACING ANY BET OR MAKING ANY OTHER DECISIONS.
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.