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Quant-Driven Fund Managers' Rotation from Fixed-Income to Equities Causes Jump in U.S. Treasury Bond Yields

Quant-Driven Fund Managers' Rotation from Fixed-Income to Equities Causes Jump in U.S. Treasury Bond Yields

CointimeCointime2024/10/19 07:30
By:Cointime

The Federal Reserve's easing cycle remains unchanged despite last week's inflation report. Quant-driven fund managers have been swapping fixed-income investments for equities, causing the yield on 10-year U.S. Treasury bonds to rise from 3.6% to 4.1%. This has led to a fall in bond prices and a subsequent increase in yields. Despite this, some stock-market doomsayers are trying to argue that stocks cannot continue to rally, but they are not considering the bigger picture.

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