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The article “Global Bond Yields Fall Near Multiyear Lows” authored by Daniel Kruger and Sam Goldfarb. It illustrates the economic concerns several investors around the world are experiencing. The concern is about the duration which the bond takes before, it yields. It is noted that the bond yield is pushed three months below the yield time. This has made many investors to raise concern that the rate of global economic growth is slowing down CITATION Kru19 \l 1033 (Kruger & Goldfarb, 2019). However, the article highlights that the economic growth is slowing down due to several factors and some of these factors are related to the bond fluctuation value in the market. In the article, it is pointed that the tepid economic data, signs of caution from the federal reserve and the geopolitical tension around the world are some of the factors, which have made the bond price to falls and therefore, causing the economic crisis being experience in the United State and around the World. According to Kruger and Goldfarb (2019), these have made many investors to become worried of the future of the economy, with many predicting the imminent of the economic recession in the near future. Generally, the article illustrates concerns being of many economists and investors of the future of the economic growth of the country.
The fall yield could be as a result of respond from the geopolitics, which has been a major barometer of performance globally. The fact that the yield price have fallen of risen does not mean economic recession would be experience of recent. The fall could be reactionary to other major economic factors. It is possible the bond yield is reacting to the oil prices, the trade war between China and the United States and some of the President Trump’s economic policies such as tax break and others. The fall of oil prices are good for the economic growth of the country and a major boost to the production industry. The fall in the prices of oil should not be a worried factor because it is likely to create a positive impact to the society. The result of fall in oil prices could be realized in other sectors and therefore, the beneficiary would be the general public.
It is therefore, not arguable that economic recession will be realized because of the fall of prices of the bond yield (KUMAR, 2017). The fact that the oil prices are stable and falling further, the employment rate is increasing, are just some indication of the promising economic growth and therefore, the worries about the bond yield prices should not be a big case. It is possible that the fall in prices is reactionary to the current politics but with time or within few days, the bond yield prices is likely to increase and investors worries would be a past.
The article is relevant to financial management because it highlights some of the aspects, which determine the economic growth. The financial management is a concept which illustrates how efficient companies or any organization should be managed profitability. The article highlights issues related to banking, bonds, Federal Reserve interest rate curb and tax cut and other major policies, which have been derived by the President over the last two years in office and some of their effects. These are factors in financial management and therefore, the article illustrated some of the issues which are addressed by the financial management.
BIBLIOGRAPHY Kruger, D., & Goldfarb, S. (2019). Global Bond Yields Fall Near Multiyear Lows. https://www.wsj.com/articles/global-bond-yields-hit-multiyear-lows-11559068245?mod=hp_lead_pos1 , 2-15.
KUMAR, P. (2017). Financial Management and Concept. https://www.accaglobal.com/content/dam/ACCA_Global/Technical/smb/pi-financial-management-entrepreneurs.pdf , 2-15.
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