Ever since I wrote this about Japan's easing monetary policy - the yields on 🇯🇵 30 year bonds are up more than x2 Japan heavily relies on debt. Today, Japan has to pay 123% more for that debt than they did 2 years ago Solutions: 1️⃣ Default 2️⃣ Inflate Yen Hello inflation 👋

Regarding global skyrocketing bond yields - it depends where you’re looking 😄 Sovereign bond yields up: 🇺🇸🇯🇵🇬🇧🇪🇺 Sovereign bond yields down: 🇷🇺🇨🇳 I’ve been posting numerous explanations for of this - all very expected

The 5 year gold char is wild 📈

30Y US bond yield just crossed 5% 😳 Scraping the ≈5.22% from 2023 👉(Soon) highest yield in >17 years! Last time yields were consistently this high was 2007. But a lot of QE policies came in force after the 2007-2011 crisis, so rates were naturally higher back then

There is also ex-ante Information Ratio, i.e. the expected future IR, based on: 1️⃣ How accurate your forecasts are (IC) 2️⃣ Num independent investments (BR) 3️⃣ How effectively your strategy can be executed(TC) 👉 Allows you to model risk-adjusted prediction of investment returns

Information Ratio is a risk-adjusted measure of how good your portfolio performs against the market average/benchmark 📈 Risk=how much your portfolio return deviates from benchmark 💡IR=1: for every 1% of risk there is 1% return 👉Look for IR>1 🔑 metric in quantitative finance

🤯 Of course temporary, but still - Gold down 3% today Outflows into equities However, some gold-linked currencies like Ruble are up 2.5% Volatility is a measure of risk. Gold volatility is an expression of the baseline systemic risk

It’s a mystery why US bond yields are skyrocketing Higher yield = higher risk, BUT the US has been doing nothing, but irradiating confidence, respect & cooperation 🤯

🇷🇺 Russian Central Bank currently has interest rates at 21% Yet the yield on a 10Y bond is 15.6% I’ve previously written that the market is both, pricing in upcoming low(er) rates & paying a premium to stay in Ruble Today, I found the targets for 2025 & 2026

🇷🇺 Budget deficit financing through the National Reserve Fund instead of bond issuance is one of the reasons why Ruble and the Russian bond yields have been doing so good 🇺🇸 $DXY is up - but not against $RUB 🇷🇺 Fundamentals speak louder than words