From Housing to Stocks, Rising U.S. Bond Vields Are Being Felt (WSI may 2018) at

Question

From Housing to Stocks, Rising U.S. Bond Vields Are Being Felt (WSI may 2018) at what point growth will be damped as a benchmark Treasury yield hovers near a seven-year high. This year's rise in government-bond yields is rippling affecting everything from mortgage rates to stock performance. Yields on 10-year government bonds through the Australia Germany Japan 04 0608 Sourtes Ryan ALM (Uus bonds) Thomson Rauters (foreign bonds) Question 1: Rising U.S. Treasury bond yields are leading to (or would expect to) all of the following ist, except omic effects, except: A Rising U.S. inflation B Rising mortgage rates C Declining stock markets D Higher borrowing costs E An increase in the value of the U.S. dollar ANSWER Question 2: What are two reasons for the rise in U.S. government bond yields in recent months? A The drop in the value of the U.S. dollar and the rise in workers' wage growth B The increasing of interest rates by the Federal Reserve and the fall in U.S. inflation C The fall in U.S. inflation and the rise in U.S. stock markets D The rise in interest rates abroad and the rise in U.S. economic growth E December's tax cuts and increases in government spending ANSWER

Explanation / Answer

Answer:1

The rising U.S. treasury bond yields are leading to (or would expect to) all of the following macroeconomic effects, except:

Answer: E : an increase in the value of U.S. dollar

As with the increase in bond yield the value of currency decreases

answer: 2:

What are the two reasons for the rise in U.S. government bond yield in recent months :

Answer : E : December’s tax cut and increases in government spending.

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