Non-Orthodox Monetary System Analysis
The significance of 10-year US Treasury bond yields extends to a universe of derivative financial products. Yields are tracked. Historical patterns analysed. What dominates is nebulous: Investor confidence; the expectations component.
Bond Yield Dynamics
Why do patterns repeat? Why do trends form?
A simple model describes the flow of net-financial assets from to non-government economic sectors over time. Model money supply is the flow of net-financial assets. The velocity of the money supply is calculated as the change in money supply, from one financial quarter to the next, as a percentage of model income (GDP).
Currency Issuing Nation
Professor Marcus Nadler of New York University, who was an Austrian refugee, taught a night course on financial markets, a big lecture course with almost two hundred students. (Charles) Simon enrolled. He got Rudolf Smutny to go with him, and then Billy Salomon, for a few weeks. "We wanted to know," Simon recalled, "why when Uncle Sam borrowed so much money his credit rating didn't decline. Why did rates go down rather than up?
Long-term, bond yield dynamics significantly trend with model money supply.