How can we participate in the rise and fall of interest rate? Firstly, we need to understand the difference between interest rate and yield.
Interest rates are a benchmark for borrowers whereas yield is for investors or lenders.
• Interest rates are the fees charged, as a percentage from a lender for a loan.
• Yield is the percentage of earnings a person receives for lending money.
Both move in tandem together, meaning if yield moves higher, interest rates will follow.
Discussion:
• Direction of the Yield in the short-term and
• Direction of the Yield in the long-term
Divergence in a bull market means the bull is losing its momentum, keep a look-out for trigger points that may cause further stress to the market.
Micro 10-Year Yield Futures
1/10 of 1bp = US$1 or
0.001% = US$1
3.000% to 3.050% = US$50
3.000% to 4.000% = US$1,000
Note:
Micro Treasury futures are not micro-sized U.S. Treasury securities. They convey no rights of ownership, nor or they pay or accrue interest.
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
Interest rates are a benchmark for borrowers whereas yield is for investors or lenders.
• Interest rates are the fees charged, as a percentage from a lender for a loan.
• Yield is the percentage of earnings a person receives for lending money.
Both move in tandem together, meaning if yield moves higher, interest rates will follow.
Discussion:
• Direction of the Yield in the short-term and
• Direction of the Yield in the long-term
Divergence in a bull market means the bull is losing its momentum, keep a look-out for trigger points that may cause further stress to the market.
Micro 10-Year Yield Futures
1/10 of 1bp = US$1 or
0.001% = US$1
3.000% to 3.050% = US$50
3.000% to 4.000% = US$1,000
Note:
Micro Treasury futures are not micro-sized U.S. Treasury securities. They convey no rights of ownership, nor or they pay or accrue interest.
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
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