Monthly Archives: August 2017

The 10-Year Treasury Yield Dips To Lowest Level This Year

Demand for safe-haven Treasuries kicked into high gear yesterday, which cut the benchmark 10-year Treasury yield down to its lowest level in nearly ten months. What’s driving this key rate down? A combination of factors, ranging from renewed market jitters over the latest missile test by North Korea to concerns that Hurricane Harvey will take a toll on US economic growth to a weak run of inflation in 2017.
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Book Bits | 26 August 2017

Are We Screwed?: How a New Generation is Fighting to Survive Climate Change
By Geoff Dembicki
Review via New York Journal of Books
Dembicki makes the case that millennials are capitalism’s worst nightmare because they are opting not to own cars, houses, and other material things, thanks to the philosophy of sharing resources, such as Lyft, Airbnb, and short-term rental of goods. A softening demand for cars means less of a market demand for oil, which means a much-reduced role for the petroleum industry. The “petrostate” will still have the plastics and chemical industries that rely on oil, but a huge sector of their industry is waning.
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The Treasury Market’s Skeptical Inflation Outlook

The persistence of low inflation will be a key topic at the Federal Reserve’s at the Jackson Hole Symposium that starts on Friday (Aug. 24). But as the world’s monetary elite prepare to discuss the finer points of “Fostering a Dynamic Global Economy,” Treasury yields are once again sliding, which implies that the crowd is anticipating that pricing pressure will weaken.
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