What Moves the Bond Markets?

COURSE DESCRIPTION

Unlike in equity markets, the largest price movements in bond markets can be attributed to readily identifiable information events. These events are the scheduled arrival of macroeconomic announcements, such as the non-farm payroll number in the United States and the Purchasing Managers’ Index in many other countries. There are many such scheduled announcements around the world. This course will explain which announcements are the most important ones and how the whole yield curve reacts to them. It will also explain how these reactions spill over into the currency markets. Finally, the course will explain why the yield curve reacts the way it does.

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KEY TAKEAWAYS

Understand the most important information events in the bond market
Understand how markets watch for and react to certain announcements

FACULTY BIOGRAPHY

Prof. Eli Remolona sits on the Board of Directors of the Bank of the Philippine Islands and is an Adviser to the Academy of Finance in Hong Kong. Prior to joining ASB, he had long careers at the Bank for International Settlements and the Federal Reserve Bank of New York. He has taught at Williams College, Columbia University and New York University and has been an Associate Editor of the International Journal of Central Banking since 2005. Eli holds a Ph. D in Economics from Stanford University.

ELI REMOLONA
Professor of Finance Director of Central Banking

Dr. Triwit Ariyathugun is the Assistant Professor of Economics at ASB and International Faculty Fellow at MIT Sloan. His research interests are in the areas of central banking and asset pricing. One of his recent projects explores the implications of the interest-on-reserves policy on asset prices and macroeconomic outcomes. Prior to joining ASB, Dr. Ariyathugun was an Instructor in the Department of Economics of the University of Chicago and a postdoctoral associate at MIT Sloan. Dr. Ariyathugun holds a M.S. in Financial Mathematics from Stanford University and a Ph.D. in Economics from the University of Chicago.