Problems are coming to a head in commercial real estate
weeklytearsheet.substack.com
On Friday after the market closed, Moody’s changed its outlook on the US economy from stable to negative. This will probably have reverberations in the bond market on Monday, however markets have been expecting this change. We had a lousy 30 year bond auction last week, which pushed up bond yields from the 4.5% level. Foreign demand is absent as China continues to sell off its Treasury portfolio. At some point that will reverse as China’s economy dips into recession and is forced to export its way out. In addition to the lousy auction, Jerome Powell said the Fed wasn’t confident that financial conditions are tight enough to bring down inflation. These two things pushed up the 10 year yield from below 4.5% to 4.64%.
Problems are coming to a head in commercial real estate
Problems are coming to a head in commercial…
Problems are coming to a head in commercial real estate
On Friday after the market closed, Moody’s changed its outlook on the US economy from stable to negative. This will probably have reverberations in the bond market on Monday, however markets have been expecting this change. We had a lousy 30 year bond auction last week, which pushed up bond yields from the 4.5% level. Foreign demand is absent as China continues to sell off its Treasury portfolio. At some point that will reverse as China’s economy dips into recession and is forced to export its way out. In addition to the lousy auction, Jerome Powell said the Fed wasn’t confident that financial conditions are tight enough to bring down inflation. These two things pushed up the 10 year yield from below 4.5% to 4.64%.