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10-year Treasury yields are up nearly 6 basis points above 2.37 percent on the day.
After a brief respite yesterday, the bond selloff is continuing today, with yields rising in European trading.
Ten-year Treasury yields are now up 5.6 basis points to 2.377 percent, nearly erasing yesterday’s drop.
The most recent peak was at 2.417 percent, so that will be one to watch, but from a technical standpoint, it is difficult to call a top, especially since markets are still pricing in a more aggressive Fed in May and June, as well as a stronger inflation outlook. If anything else, the long-term channel trend, i.e. the bond market “bubble,” may be more significant.
- The demand for safe havens is increasing.
- Given the ongoing conflict in Ukraine, the resurgence of the COVID-19 Omicron Variant, and inflation that appears to be on the rise, a Gold ETF may be an attractive long-term investment.
- Indeed, as the Russia-Ukraine conflict rages on, the race to bearer assets appears to be on.
- Currently, gold was thought to be the go-to, top-of-mind bearer asset, but Bitcoin quickly gained ground and is likely to have achieved that status as well.
- Physical gold is only a bearer asset if you store it yourself, and storing gold, especially if you own a lot of it, can be difficult and risky, as well as costly if you need a custodian and insurance.
- Because it is bulky, sending it somewhere or moving it around can be difficult at times.
- Verifying it is also a significant challenge. As a result, when all of these factors are considered together, it becomes nearly impossible to send a large amount of gold to another person or institution.
- Furthermore, when purchasing physical gold bars, for example, there is an additional premium that must be paid, which can be around 10% in some cases, implying that you must pay more than the market value at the time.
- A gold exchange traded fund is similar to a stock in that you can trade it as much as you want in your brokerage account.
- It functions similarly to a gold IOU in that you are purchasing an ownership interest in a trust that owns gold and keeps it with a custodian rather than the actual gold. Gold ETFs allow you to participate in the action, but they are not what many people believe they are.
- When compared to actual physical ownership, there are many things “in the way” of the gold purchased through ETFs.
- Those things add convenience to the process, but they also appear to add risk because in the event of an act of God, a terrorist attack (similar to what happened with the gold kept on the World Trade Center, but was later recovered), force majeure, or if the gold is lost or destroyed, you may find yourself in an awkward position.
The missile is said to have landed 170 kilometres west of Aomori, Japan, and may be a new type of inter-ballistic missile. The missile is said to have landed in Japan at 3:54 p.m. local time.
The theory of a new type of missile is intriguing, as it explains why Japan may have had difficulty identifying it earlier when it was launched here. For the time being, it doesn’t indicate much other than North Korea’s continued escalation in recent weeks, but it’s worth noting just in case.