Fed's Goolsbee Says We Are All Paying Attention To Figure Out What Is Driving Long-Term Yield Rates
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve's Goolsbee has stated that everyone is closely observing to understand what is driving long-term yield rates.
November 07, 2023 | 1:09 pm
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NEUTRAL IMPACT
The SPDR S&P 500 ETF (SPY) could be affected by changes in long-term yield rates as it tracks the S&P 500 Index, which is sensitive to interest rate changes.
The SPY ETF tracks the S&P 500 Index, which includes companies that can be sensitive to changes in interest rates. If long-term yield rates increase, it could lead to higher borrowing costs for these companies, potentially affecting their profitability and thus the value of the SPY ETF. Conversely, if yield rates decrease, it could lower borrowing costs and potentially boost profitability, possibly positively impacting the SPY ETF. However, the exact impact will depend on the specific changes in yield rates and how they compare to market expectations.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50