Why Bond Yields Are a Key Economic Barometer | WSJ

The Wall Street Journal
The Wall Street Journal
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Published 2022-01-25
U.S. government bond yields aren’t just a barometer of the economy, they also influence the cost of borrowing, from mortgages to student loans. WSJ explains how they work and why they’re so crucial to the economy. Photo illustration: Tom Grillo/WSJ

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All Comments (21)
  • @matturner8
    Many people are experiencing crash market fatigue and are tired of hearing about the worst, even though it's true. We're slowly being boiled in the pot! I want to diversify my $250K portfolio.
  • @shehanism
    Great video showcasing the relations between expansionary and contractionary monetary policy essentially.
  • @scottarmstrong11
    Even if bond yields are rising while stock prices are decreasing, the markets are still skeptical whether the Federal Reserve will stick to its goal to raise interest rates until inflation is under control. As I'm still debating whether to sell my $401k worth of equities, what is the best way to profit from the current down market?
  • @chrismillson2779
    The majority of my holdings ($650K) are Nasdaq, Apple, and Tesla stocks, respectively. I got in early but am undecided whether to sell or purchase back at reduced prices owing to the present market condition.
  • @JustMe-ro1be
    Love these short educational videos. Great stuff.
  • @Kirmo13
    WSJ (5 million subscribers) in 2022 posts a video in 720p No folks, this is not a joke
  • @ThormanBoucher
    Fed reserve and the treasury is not bothered about stock capital market. They are more concerned about the treasury bond market. They fear the bond market may become dysfunctional and illiquid. Bond yields are one of the important parameter that influences stock market. All stock pundits fail to mention how the bond yields influence stock market. My main concern now is how we are going to achieve all of that given that the market has been a mess for most of the year. I already lost $23,000
  • @dbake5021
    Being able to watch this video and know all of this is such a good feeling. Who knew college education is so beneficial.
  • @c.t.u.o
    Munger and Buffett have both achieved an incredible feat with Berkshire. They've turned thousands to billions, and have made a lot of people wealthy in the process. I really saw the potential of the stock market by reading Berkshire's annual letters. I recently sold my $674k apartment in the Bel Air area and I'm hoping to throw it into the stock market. I just don't want to lose everything.
  • @filippobaroli7206
    Really happy to have understood everything, all the terms and technicalities, in the video. I thought doing a bachelor’s degree in economics was a wast of my time but in these cases…it shows me it was worth it!
  • @jackbrady9738
    When you derive every possible capital investment you could possibly make, the one which is the ‘safest’, is the bond from the country with the strongest government (US). All investments are then analysed to that yard stick. That’s why it’s vital.
  • @kytv9000
    I'd watched so many bond-yield-price videos and thought I'd understood it. Till today I know I missed the info at 2:24. I did not know that the "yield goes up" also applied for the existing bonds, as their yield is calculated on the current price (lower) instead of the face value.