Managerial Economics: Week 6 Discussion Topic

Week 6 Discussion Topic

Attached Files:

6th Article for Discussion:

Article:  U.S. 10-Year Treasury Yield Tops 1.5%

U.S. 10-Year Treasury Yield Tops 1.5_ – WSJ.pdf

Expectations for higher interest rates and an improving economy have investors pushing yields higher.  The yield on the benchmark 10-year U.S. Treasury note topped 1.5% for the first time since June, lifted by optimism about the economic outlook and the prospects of tighter monetary policy.

 

A)

Question 1:  What two announcements by Federal Reserve chairman, Jerome Powell, caused the shift to higher interest rates on the 10-year Treasury Bond?

 

Question 2:  According to the article, what is the correlation between bond prices and bond yields?  What happens to investor expectations when interest rates rise?

 

Question 3:  What other factors have contributed to a rise in interest rates?

 

Question 4:  Do you agree or disagree with Adam Crisafulli, founder of Vital Knowledge, and his assessment of rising yields? Why?

 

Question 5: Discuss how you think the stock market would react to higher yields in the bond market?  Why?

 

(Separate your response by question number)

 

  1. B)  Post a link of One article that supports One of your responses to the questions above and/or provides more insight on the subject discussed in the article.