Backwardation in ZB

[LacesOut]

Dec trading 138'26
Mar trading 138'10

I haven't been following them much but just noticed - has this been normal lately?
Sign of??

 

[destriero]

lol nobody uses the term backwardation in rates.

 

[nooby_mcnoob]

Isn't that called yield curve inversion, and also isn't that actually not happening here

 

[destriero]

Isn't that called yield curve inversion, and also isn't that actually not happening here

Correct and correct. Surreal.

 

[2rosy]

Correct and correct. Surreal.

why would you call it yield curve inversion? its same tenor. forward curve inversion

 

[sle]

All right, children, repeat after me:
Rates higher, bonds lower! Rates lower, bonds higher!

 

[eurusdzn]

All right, children, repeat after me:
Rates higher, bonds lower! Rates lower, bonds higher!

Not if the fed stops.

 

[sle]

Not if the fed stops.

Neither the Fed nor even Mr President himself can change the inverse relationship between the yields and the bond prices

 

[eurusdzn]

Not if the fed stops.

i was being profound, like Gump , to ease the tension in the room. But ....not if Mr. Trump stops! Doubling down.
Tarriffs on all imports will likely hurt all products including plastics.

 

[sle]

i was being profound, like Gump , to ease the tension in the room

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?