Question

What are two main causes for the recent sharp rally in various governments' bond yields?

Why has gold declined recently when the world seems to be in chaos and gold has historically been a haven in times of economics and political stress?

Over the past 30 years, oils stocks have frequently been the last group to rally in bull markets. What is a plausible reason for this phenomenon?

What recent evidence do we have that bond investors are smart?

If you were a hedge fund, What would you follow for intraday US equity market trading direction?

Answer 1

1.Recent sharp rally in government bonds yields are because of two reasons-
1.Demand for higher bond yields in market occur to compensate the government debt risk.
2.High savings in Private sector- As they tend save more ,they demand for more bonds.

Gold prices have recently declined because US- Iran tensions are easing which boosted the investers.

Due to Covid-19 which is spread globally which made countries to lockdown their borders making oil prices go up.

Bond investers are smart because if there is a rise in interest rates,they reinvest the bonds bthat are going to mature.