Treasury Bonds Rise on Lower Inflation Expectations - Essay Example

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The paper "Treasury Bonds Rise on Lower Inflation Expectations" highlights that Ming Zeng writes about money and investing issues that include interest rates, global asset allocation and bonds in various locations in the US, though most of his work deals with fiscal matters in the US…

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Treasury Bonds Rise on Lower Inflation Expectations

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Subject: Macro & Microeconomics
Type: Essay
Level: Masters
Pages: 2 (500 words)
Downloads: 3
Author: claudia33

Extract of sample "Treasury Bonds Rise on Lower Inflation Expectations"

“Treasury Bonds Rise on Lower Inflation Expectations” is copyrighted to Dow & Johns Company, and is available online on The Wall Street Journal website.

The article explores the current state of Treasury bond yields and prices in the US financial market. According to Zeng, the strengthening of the bonds is a sign that inflation has been tamed in the US market. As result, the Federal Reserve is not in a hurry to increase the interest rates, a factor that has highly boosted investor confidence (Zeng, 2014). The trading in the Treasury bonds has recorded little change in terms of yields. This is in addition to the fact that the prices of imported goods have also fallen. The article states that in the current US financial market, the prices of treasury bonds face no threats, a reason why investors are confident when investing in the bonds.

The goal of the author in this article is to explore the state of treasury bonds in the US market. The author wants to show the increased confidence of the investors, a depiction that it is the right time to invest in treasury bonds as inflation appears to have been tamed in the US financial market. To do this and to achieve the objective of showing that the current state of the US Treasury bonds has strengthened, the author analyzes the trading and yields from the treasury bond over the last couple of weeks to prove to the reader that the bonds have indeed strengthened.

Ming Zeng has been able to achieve his goal of showing that the prices of treasury bonds have strengthened. His success in attaining this goal is evident in the way he can clearly show the prices and the yields of the treasury bonds over the last couple of weeks to depict the trend and prove that they had strengthened. His conclusion that it is a good time for investors to put their money on the bonds is valid as he can use factual data from Tradeweb/WSJ Market Data Group to prove his point and the current state of the treasury bonds (Zeng, 2014).

In my opinion, the author uses an appropriate writing style as the article is straightforward to read. In addition to this, the author uses figures and data tables to help in passing the intended points. He also shows the prices and yields of the bonds, as well as all the other influencing factors in a clear way to help in the understanding of the article. Read More

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