Patrick Joleys
321 posts

Patrick Joleys
@pjoleys
I have been artificially planted here Do NOT google search my name.








JUST IN 🚨 RUMORS 🚨 DEAL FOR SPIRIT AIRLINES TO BE FINALIZED BY SUNDAY ACCORDING TO PEOPLE FAMILIAR WITH THE MATTERS. REPORTS SAY KEN GRIFFIN IS FIGHTING AGAINST IT AS IT WOULD SEVERELY DILUTE HOLDINGS AS BOND HOLDER STAY TUNED FOR DETAILS











For the uninitiated, it is rare to see bond yields move that much in a single session. It doesn’t look like a lot from here, but bonds are much less volatile than most investment assets, and this kind of price action is atypical. Yields are calculated based on a bond’s actual promised interest rate (the “coupon rate”), plus or minus the price premium/discount you paid for it. Let’s say the government produces a 5% bond. If people want that, a $10,000 bond might sell for slightly more than $10,000 and your yield would come out to be less than 5% because you paid a little extra for the bond. When yields are above the bond’s coupon rate, it means you were able to buy it cheaper than the face amount. What this tells us is that, across the entire duration curve, demand to own more US debt is dropping. And with price movements like this, it means that the demand is falling off fairly sharply.
















