Why treasury yileds hit records? Which sector may perform better?

The benchmark 10-year Treasury yield rose to a 16-year high, crossing 5% for the first time since July 20, 2007, reaching as high as 5.029%.

Why do US treatury yields continue to hit new high?

1) Powell speech reiterates the Fed's goal of bringing inflation down to 2%.

My colleagues and I are committed to achieving a stance of policy that is sufficiently restrictive to bring inflation sustainably down to 2% over time.

2) The latest auction of 30-year Treasury bonds revealed poor investor demand. The disparity between supply and demand triggers market concerns.

3) The US federal deficit of $1.7 trillion for the 2023 fy led to increased interest costs for the government.

Will the market dip further with higher US treasury yields?

Will 2023 repeat what happened in 2007, 1987 and 1929?

r/wallstreetbets - 36yrs ago Dow Jones fell 22% in a day.

Which sector may perform better when US treasury yields climb up?

data and chart from xtb

Will market dip further with higher US treasury yields?

Do you agree with this chart?

Will the market dip further with higher US treasury yields?

Leave your comments and repost to win tiger coins!

# Time to buy treasury as Ackman close short position?

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  • icycrystal
    ·2023-10-20
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    • Universe宇宙
      [ShakeHands]
      2023-10-21
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    • xXxZealandxXx
      🌺🐱
      2023-10-21
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    • Shyon
      Thanks for tag hehe
      2023-10-20
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  • koolgal
    ·2023-10-20
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    🌟🌟🌟Higher Treasury Yields is bad news for stocks as it translates to higher credit costs for companies especially growth stocks which take on loans to grow their companies.  This affects their earnings and with lesser earnings, investors prefer to invest their money into other safe haven assets like Gold and US Dollar.

    Nonetheless the market moves in cycles.  When the stocks are down, it is time to deploy the warchest and go Treasure Hunting especially for the Magnificent 7 like $Apple(AAPL)$ $Microsoft(MSFT)$ $Amazon.com(AMZN)$ $NVIDIA Corp(NVDA)$ 

    and $Tesla Motors(TSLA)$  

     Volatility in the markets is the price we pay for extraordinary returns in the long run on stocks. 

    @Tiger_comments  

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  • icycrystal
    ·2023-10-20
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    I believe the market will dip further as most people will be channelling their [USD] [USD] [USD] to yields which give a better return. needless to say, that's what i and most people tend to do [Grin] [Grin] [Grin] of course, if have more [USD] [USD] [USD] then can go "shopping" for good stocks at good price [Happy] [Happy] [Happy]
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    • koolgal
      Thanks for sharing your insights 😍😍😍
      2023-10-20
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  • Universe宇宙
    ·2023-10-21
    TOP

    @TigerGPT  Which US stock sectors perform the best in the year 2007, 1987, 1929? Also, how is the Singapore economy and stock market performance in the year 2007, 1987 and 1929? Please provide your answers in at least 6 paragraphs and grabs data and information from the Internet and list down as much references as possible. Thank you my friend.

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    • Universe宇宙Replying toAqa
      [Chuckle]
      2023-10-23
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    • Universe宇宙Replying toAqa
      [Chuckle]
      2023-10-23
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    • Aqa
      Thanks for ‘omg’ to my selfie!
      2023-10-22
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  • Shyon
    ·2023-10-20
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    Personally I think the history will repeat, meaning to say Energy and Financial sector may perform better when US treasury yields climb up. So if you think treasury yield will continue to trend higher, is time to relook into the stock in these sectors. How do you think? @GoodLife99 @Aqa @b1uesky @icycrystal @Universe宇宙 @rL @koolgal
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  • MHh
    ·2023-10-20
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    Yes expecting market to dip further. But could also be a short term thing if the Fed is able to cut rates in late 2024 or 2025. Hoping this is a knee jerk reaction[Facepalm]  

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    • HelenJanet
      We need to wait very very patiently for the share price to go up again. [Comfort][Comfort]
      2023-10-21
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  • AliceSam
    ·2023-10-21
    TOP
    @TigerGPT 美国联邦赤字1.7万亿美元二零二三财年导致政府的利息成本, 这个对股票下跌有影响吗?
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  • Tiger_comments
    ·2023-10-30

    @Gilar3101

    @AliceSam

    @BenedictMill

    @highhand

    @Success88

    @HelenJanet

    @JL28168

    @MasterStonker

    @TimothyX

    @icycrystal

    @MHh

    @Shyon

    @Aqa

    @Universe宇宙

    @TigerGPT

    @RXU

    @koolgal

    Thank you for commenting on my post. Your coins have been sent to your account~ Don't forget to check your tiger coins💖

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  • TimothyX
    ·2023-10-23
    爲什麼美國收益率持續創新高?


    (1)鮑威爾演講重申美聯儲將通貨膨脹率降至2%的目標。


    我和我的同事們致力於實現一種足夠嚴格的政策立場,以便隨着時間的推移將通脹率可持續地降至2%。
    2)最近一次30年期美國國債拍賣顯示投資者需求低迷。這個供求差距引發市場擔憂。


    3)美國聯邦赤字1.7萬億美元二零二三財年導致政府的利息成本。
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  • Aqa
    ·2023-10-23
    Higher US treasury yields means higher costs of borrowing. Businesses and investors borrows less and spend less, market will dip further. Growth stocks that need loans to grow business suffer the most. Gold is a more preferred asset as compared to stocks. Cash (dollars) is king! By the way, this is good time for DCA and catch the good stocks at bargain prices.
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  • TimothyX
    ·2023-10-22
    鮑威爾演講重申美聯儲將通貨膨脹率降至2%的目標。


    我和我的同事們致力於實現一種足夠嚴格的政策立場,以便隨着時間的推移將通脹率可持續地降至2%。
    2)最近一次30年期美國國債拍賣顯示投資者需求低迷。這個供求差距引發市場擔憂。


    3)美國聯邦赤字1.7萬億美元二零二三財年導致政府的利息成本。
    Reply
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  • Shyon
    ·2023-10-22
    Another reason that treasury yield goes higher is due to the latest auction of 30-year Treasury bonds revealed poor investor demand. The disparity between supply and demand triggers market concerns.
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  • RXU
    ·2023-10-22
    yes, US market will dip if yield continues to climb 🪜 When Treasury yields climbs higher, it becomes more expensive for businesses to borrow money. This in turn leads to reduced business investments, potentially affecting corporate earnings. This is particularly bad news for tech stocks which are valued based on their future expected cash flows.

    keep a keen eyes on the market, select quality stock and DCA in

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  • Universe宇宙
    ·2023-10-21
    @TigerGPT Is the US treasury yield in 2023 the highest in the past 100 years? What is the highest treasury yield in the past 100 years?
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  • MHh
    ·2023-10-20
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  • icycrystal
    ·2023-10-20
    @TigerGPT The benchmark 10-year Treasury yield rose to a 16-year high, crossing 5% for the first time since July 20, 2007, reaching as high as 5.029%. Will market dip further with higher US treasury yields?
    Reply
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  • Shyon
    ·2023-10-22
    Powell speech reiterates the Fed's goal of bringing inflation down to 2% causes US treasury yield to trend higher recently.
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  • Universe宇宙
    ·2023-10-21
    @TigerGPT Tell me more about the US economy and stock market in the year 2007, 1987 and 1929.
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  • MasterStonker
    ·2023-10-20
    We all know that banks, insurance companies, brokerage firms, and money managers will benefit the most from high treasury yields.
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  • JL28168
    ·2023-10-22
    war is ongoing..the market sure continue affected ..those resources stock will perform like petrol, gold, foods
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