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Bond yields are so low!
- Thread starter The Kin2
- Start date
There buying because its what keeps this system going. Keeps us employed and them employed
Quote from The Kin2:
LoL @ 2 year yielding 2.4%
T-bill @ 2.9%
Why foreigners buy our bonds is beyond me. Even fake inflation is at 4% along with dollar depreciation. I guess the day they stop is when rates will skyrocket. Maybe.
Recession = price deflation, which means these returns in real terms are much higher. Corporations are cash rich (i'll leave out the broke financials); a lot of that money comes from domestic sources ... We have the largest GDP in the world.
Quote from The Kin2:
LoL @ 2 year yielding 2.4%
T-bill @ 2.9%
Why foreigners buy our bonds is beyond me. Even fake inflation is at 4% along with dollar depreciation. I guess the day they stop is when rates will skyrocket. Maybe.
Price appreciation. Yields go down and bond prices go up. It's very plausible that anybody buying bonds are counting on declining interest rates which will create capital gains opportunities on the prices.
Quote from tradestrong:
Price appreciation. Yields go down and bond prices go up. It's very plausible that anybody buying bonds are counting on declining interest rates which will create capital gains opportunities on the prices.
Yes. Then interest rates should be falling hard then. We're currently at 4.25% and with every cut bond yields SHOULD trade even lower.