Wall Street Webcasting Presents: Wells Fargo Securities: Investors Continue to Push Yields Higher as "The Beginning of the End of Financial Repression" Draws Near
NEW YORK--(BUSINESS WIRE)-- Wall Street Webcasting has prepared and provided for you an exclusive broadcast of Wells Fargo Securities own, Rich Gordon. Gordon is highly recognized for his weekly narrates regarding the fixed income strategy at Wells Fargo Securities (NYSE: WFC). This week, Gordon discusses the debate over who will become the new Fed chairman, and how this decision will greatly impact certain economic data.
A feeble performance seen in the bonds market recently is thought to be at least partially a consequence from the recent debate over who will become the new Fed chairman. Rumor has it that the title will go to either Lawrence Summers, the prior Secretary of Treasury, or Janet Yellen, who is the ongoing Vice President of the present Fed panel.
The 10-Year Treasury Yield breached the 20 basis point mark over the course of this past week. The most common "real return" in government securities since 2000 has been roughly 1.5%, and we have been regularly inching our way back to that number. For a 10 year government bond, an equitable inflation level would be somewhere in the range of 1.75% and 2.50%. With this, and the real return united, it creates a fair return for the 10-Year Treasury Yield.
The end of QE is heavily dependent on not only equities, but treasuries as well. Equities showed a pleasant recovery throughout the month of July. However, price declines are being identified in the month of August. This has caused a shift in some stock investors' decision making process.
To learn more about who the new Fed chairman will be, and how this decision may affect the results of many important pieces of economic data, please tune into Wells Fargo Securities' latest video.
Please visit the following link to view the video:
Wall Street Webcasting
Heather N. Capizzi, 201-683-2100
KEYWORDS: United States North America New York
The article Wall Street Webcasting Presents: Wells Fargo Securities: Investors Continue to Push Yields Higher as "The Beginning of the End of Financial Repression" Draws Near originally appeared on Fool.com.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.