The value of global bonds increased to USD 56.282 trillion last week, up USD 134 billion! This is caused by the low manufacturing PMI of US (under 50).
China PPI Trended Down
The China producer price index (PPI) reduced 0.8% last month, the highest softening over last three years! This issue has increased the concerns about the recession and caused the market participants to invest on bonds and gold. Therefore Dow Futures Index decreased to -0.25%. On the other hand, the China consumer price index (CPI) bounced…
The US Purchasing Managers’ Index (PMI) in August 2019 is reported 49.1 and after 3 years, on a bearish trend! This causes the gold price to rise and increase investing in bonds. Gold: +1.5% Silver: +4.5% 2-year bond: -2.92% Oil: -1.8%
The Bond Market
US with selling over USD22 trillion of bonds, not only is the biggest seller of bonds among countries but also set a new record with USD600 billion daily trading volumes of bonds! After US, UK is in the second place with USD200 billion of daily trading.
House mortgage with negative interest rates in Germany!
The rush of #investors to low risk properties including #bonds during previous weeks caused the bond’s interest rates to fell as low as 0% or even below this level! This issue has caused the 10 year #German mortgage-backed bond yields to fall further and further into negative territory and is now at -0.26%.
It seems that Gold buyers have good days ahead!
Increasing concern about the possibility of #economic_stagnation caused the investors to quit the #stock_market and enter the less risky markets including #bonds. The growth of demand in #bond_market has made 30% of the market equal with 16 trillion dollar to become negative, putting the central bank of the United States under pressure to change its…