Backwardation in ZB

[eurusdzn]

You could ask all sorts of philosophical questions like "can God make both bonds and yields go up?"

Actually, that takes me down a serious rabbit hole - can God issue a bond that he would default on? Would the debt issued by the Devil be secured by the real estate, while the debt issued by God be more nebulous? If God knows the future, can he serve as his own rating agency?

I wont sleep tonight. Figure I can respond in days.

 

[srinir]

You could ask all sorts of philosophical questions like "can God make both bonds and yields go up?"

Actually, that takes me down a serious rabbit hole - can God issue a bond that he would default on? Would the debt issued by the Devil be secured by the real estate, while the debt issued by God be more nebulous? If God knows the future, can he serve as his own rating agency?

Since you are going on rabbit hole, bonds and yields can go up at the same time in the case of floating rate bonds.

Even in the case of regular bonds, bonds and yields can go up if one holds till its duration

 

[Sig]

Go back to importing rubber Dogshit from China.

I must have missed something, why the gratuitous hostility?

 

[sle]

Since you are going on rabbit hole, bonds and yields can go up at the same time in the case of floating rate bonds.
View attachment 193941

Erm, the price (clean) is still probably falling based whatever tiny duration these things got, while this is just a coupon accruing. Plus, God does not issue FRNs