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April Fears Ahead of Fed, Spain & China
Cyclical volatilities in April are backed by fears of a hawkish Fed dissent, resurging Spanish yields & further Chinese doubts
I think at least, in a view of investment, equit is a good one to exceed inflation. But I'm only a speculator, who is interest in financial market when the yield of spain soared, resulted in the dive of EU, or when the yield of 2 year US treasury rising, it could anticipate the same in UJ. So this is why analysing bond market is alluring me.
at time t+1 to price p. And so on. Same for fx traders. The traditional bond trader trades also mispricing but in terms of yield, thus he goes for the safety of fixed return and the probability of profit from mispricing of the yield.
When you depict the value of the DOW in USD over the price of indispensable essential basic food you will see the DOW did not return much buying power if at all.
What about bonds inclusive of interest?
You know, the bond market in China is not advanced. In developed counties, bond market emerged earlier than equity market, but in China, most people are only familiar with equity but know little about bond. I sure read Laidi's book but still don't totally understand the their relationship. This is why I want to learn it.
I just feel that the financial crisis is alsways caused by gonverment bond, and it leads the trend of FX or equity market. So this is why I want to learn something about it. But I think you are right, the information mentioned in your book is already enough. So I will review it again.
The handbook of Fixed Income securities by Fabozzi is known as the bible on bonds but you probably dont need that much detail. Need to know your technicals to trade futures (price not yield) .My book covers yield curves. Know auctions, econ data, duration, convexity to understand the real nitty gritty. Youll find it on-line.
Ashraf
Where can I learn about how to analyse bond market?