The debt instrument market has seen a sharp increase in volume over the past few months, as the Federal Reserve continues to raise interest rates.
The volume of debt instruments has risen by almost a quarter over the last two years, and the Federal Funds rate has increased by nearly half since last September.
Here’s a look at which debt instruments have the most to gain from higher interest rates: The value of bonds and notes.
Inflation-adjusted bonds are up by $2.2 trillion to $1.9 trillion.
This means the total value of U.S. bonds is up about $1,300 billion.
The Value of Treasuries, Bills and Securities.
This is a huge growth for debt instruments, with the value of Treasury bonds up by about $4.6 trillion, the value and maturity of U of T Bills up $1 billion, and other government debt up $2 billion.
The total value for the S&P 500 is up $8,800 billion, up by more than 4,000 points.
Value of International Treasurys.
These are the most valuable stocks and bonds in the world, with $1 in the S & P 500 up about 4,600 points, the Dow Jones Industrial Average up $3,600, and U.K. shares up about 1,300 points.
The value of all these securities has increased more than a quarter since last October.
Traders and analysts have speculated that the Federal funds rate will increase more in coming months, but the Fed has not indicated that it will begin raising rates this year.
Banks are also investing heavily in debt instruments.
The S&s of Bank of America, JPMorgan Chase and Citigroup all saw significant growth in their U., S, and M market holdings in the second half of this year, with each holding about $600 billion in debt.
Other asset classes.
There are a number of other asset classes in the $1-trillion to $2-trilion range, with U. S. stocks having the largest gains in the value category, as well as stocks from China and other emerging markets.
Crude oil has seen its value soar by about 9.5 percent in the last month, and gold has gained about 1.5 points in the past month.
The gold value is up by almost $1 million, or about $50 million, since October.
The value and quality of all the assets in this category are up about 8 percent since last year.
The value-weighted index of the Dow has gained 2.6 points, and that of the S stock index has risen more than 11 percent.
FTSE, which tracks companies’ shares of the NASDAQ, has gained 6.3 percent, and S&p 500 index has gained 5.2 percent.
Gold and silver are also up.
The price of gold rose 2.7 percent in December, while silver rose 2 percent.
The dollar also rose against a basket of currencies, and a basket including gold.
Gold and other precious metals have been rising more than the S.YTD.
“While gold is still down more than 3 percent from the start of the year, it has been up by a lot since October, which is quite impressive,” said Michael Johnson, an economist at RBC Capital Markets.
Investors are also focusing on the yield curve.
Yields are currently rising by 1.4 percent per year, and rising faster than the Federal government’s benchmark interest rate of 0.5 percentage points.
This year, investors are also buying bonds, which have an interest rate that is typically less than 1 percentage point.
“The yield curve is up this year by about 4.5 basis points, which I think is a good sign, and this is the first time that the yield is going up,” Johnson said.
What’s more, the Federal Government has taken steps to help businesses.
Since January, the U. K. has raised its statutory corporate tax rate from the current 1.3 percentage point to 1.9 percentage points, making the U of K the first major European country to raise taxes.
Another big move came this month when President Donald Trump signed a bill creating a tax credit for businesses that sell health care coverage.
The credit would be available to small businesses and small groups, and could be worth up to $500 million.