The charts that matter: global bond yields take a dive

As government bond yields around the world take a big tumble, we look at the charts that matter most to the global economy.

Welcome back. 

In this week’s magazine, we look at the challenges facing the G7’s plan to impose a minimum rate of corporation tax rate around the world in an attempt to get a hold of some of the profits of the world’s biggest multinational companies. Is it a good idea? Will it come to anything – and can it be made to work? We also look at buying foreign shares. Most investors stick to their home markets, but it makes sense to look abroad, too. Cris Sholto Heaton gets stuck in to the whys and hows of investing abroad.

For this week’s podcast, we’ve got something of a treat for you. Merryn is joined by the FT’s Gillian Tett – but this week it’s available on video as well as audio. Gillian talks about how her training as an anthropologist has helped her make sense of the markets and the global economy, and why it’s so important for everyone – corporations, governments and individuals – to not just look at cold hard economic facts, but to take human nature into account, too. Watch the video here.

This week’s “Too Embarrassed To Ask” looks at passive investing – sometimes known as index investing – buying funds that just track an index, rather than ones that are made up of stocks picked out by an active manager. Find out more here.

Here are the links for this week’s editions of Money Morning and other web stories you may have missed.

Now for the charts of the week. 

The charts that matter 

Gold has steadied after falling from its recent high.

Gold price chart

Gold price chart

(Gold: three months)

The US dollar index (DXY – a measure of the strength of the dollar against a basket of the currencies of its major trading partners) is also treading water.

US dollar index chart

US dollar index chart

(DXY: three months)

While the Chinese yuan (or renminbi) just keeps getting stronger (when the red line is rising, the dollar is strengthening while the yuan is weakening). 

USD/CNY currency chart

USD/CNY currency chart

(Chinese yuan to the US dollar: since 25 Jun 2019)

The yield on the ten-year US government bond has dropped back to a level not seen since early March.

US 10-year Treasury bond yield chart

US 10-year Treasury bond yield chart

(Ten-year US Treasury yield: three months)

The yield on the Japanese ten-year bond has also taken a dive.

Japanese government bond yield chart

Japanese government bond yield chart

(Ten-year Japanese government bond yield: three months)

And the yield on the ten-year German Bund, followed suit.

German Bund yield chart

German Bund yield chart

(Ten-year Bund yield: three months)

Copper is drifting from its recent high.

Copper price chart

Copper price chart

(Copper: nine months)

The closely-related Aussie dollar continued to meander sideways.

AUD/USD currency chart

AUD/USD currency chart

(Aussie dollar vs US dollar exchange rate: three months)

Bitcoin has so far failed to regain its recent losses.

Bitcoin price chart

Bitcoin price chart

(Bitcoin: three months)

US weekly initial jobless claims took another fall, down 9,000 to 376,000, compared to 385,000 last week. The four-week moving average fell to 402,500, down 25,500 from 428,000 the week before. 

US initial weekly jobless claims chart

US initial weekly jobless claims chart

(US initial jobless claims, four-week moving average: since Jan 2020)

The oil price kept on climbing.

Brent crude oil price chart

Brent crude oil price chart

(Brent crude oil: three months)

Amazon rose sharply.

Amazon share price chart

Amazon share price chart

(Amazon: three months)

And Tesla made something of a recovery after the previous week’s losses.

Tesla share price chart

Tesla share price chart

(Tesla: three months)

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