Dissection of the Bond Market

09 May Posted by in Techical Analysis | Comments Off on Dissection of the Bond Market
Dissection of the Bond Market




Fluctuations in interest rates, and the accompanying changes in nominal bond prices are pivotal developments to consider, in a valid assessment of the economy.

For months now, the central bank has been tasked to time the most effective monetary policy suitable to ensure that our economy’s recovery is not short circuited. Simultaneously, policy adjustments should not have any longer term inflationary side effects.

Policy balancing acts such as this seldom are perfect. However, without them present structural anomalies, would be more deeply felt. A technical dissection of “rates”, could provide an analytic perspective not intrinsic to the economist formulating policy. A byproduct of such a study might also point the astute trader to high value trading events.