Thursday, August 12, 2021
Why Are Yields So Low?
This week in the LPL Market Signals podcast, Ryan Detrick is joined by Marc Zabicki and Lawrence Gillum, where the team discusses one of the big questions lately: how in the world are bond yields so low?
Coach K was a speaker at LPL Focus this year and the team dives into his amazing speech. Ryan points out how Coach K stressed to live in the moment. There are so many things happening at once these days, but focusing on the moment is one way to find success. It was a memorable discussion that the LPL Research team will not soon forget.
Let’s Talk About Bonds
The guys had a fun discussion about potential new leadership at the Fed, but the consensus remains that Powell will get a second term next February. The conversation then shifted to bonds and why yields may be so low. Lawrence noted that yields might look low here, but overseas yields are actually quite high. In other words, with more than $16 trillion in negative yields around the globe, our 10-year Treasury yield at 1.25% actually might not be as low as it seems. Marc and Lawrence both noted that low yields have many concerned about the bond market, but that action in the credit markets is still extremely healthy and shows no signs of stress. If a new recession was coming, we’d likely see more worrisome indicators in the credit markets.
Tune In Now
Listen to the entire podcast to get the LPL strategists’ views and insights on current market trends in the US and global economies. To listen to previous podcasts go to Market Signals podcast. You can subscribe to Market Signals on iTunes, Google Podcasts, or Spotify and find us on the LPL Research YouTube channel.
You can watch the full video below and directly on our YouTube channel. Please be sure to subscribe to the LPL Research YouTube channel so you don’t miss anything! Also, if you like our channel, please give us a positive review—it helps more than you know!
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.
References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.
All index and market data from FactSet and MarketWatch.
This Research material was prepared by LPL Financial, LLC.
Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC).
Insurance products are offered through LPL or its licensed affiliates. To the extent you are receiving investment advice from a separately registered independent investment advisor that is not an LPL affiliate, please note LPL makes no representation with respect to such entity.
- Not Insured by FDIC/NCUA or Any Other Government Agency
- Not Bank/Credit Union Guaranteed
- Not Bank/Credit Union Deposits or Obligations
- May Lose Value
For Public Use – Tracking # 1-05178995