Buy 30 year treasuries

Daal · Nov 18, 2008

Quote from nazzdack:

What if the Fed were to bid-up Fed Funds AND Eurodollar futures all the way to "par"?

then I will write the book 'maestro: the bernanke fed'

nazzdack · Nov 18, 2008

Quote from Rtrader2525:

whats the all time high on the 30 year??

1) The 8% coupon got up to ~135 in October-1998.
2) The 6% coupon got up to ~125 in June-2003. Converting the 6% into an 8% would give a price atleast 20 handles higher.

PohPoh · Nov 18, 2008

fwiw, I'm about to barf at this move in the bonds, which means it's probably time to double my shorts...

Rtrader2525 · Nov 18, 2008

Quote from nazzdack:

1) The 8% coupon got up to ~135 in October-1998.
2) The 6% coupon got up to ~125 in June-2003. Converting the 6% into an 8% would give a price atleast 20 handles higher.

Thanks man.

LVtrader35 · Nov 18, 2008

No offense, but this is a TERRIBLE investment...you are much better off buying a good MLP (master limited partnership) and get a solid dividend that has a great tax advantage...the 30 is just a bad idea.

riskfreetrading · Nov 18, 2008

Quote from RiceRocket:

The federal reserve is now utilizing the same strategy Japan did starting in 2001. Quantitative easing. Part of that strategy is to go directly into the treasury market to drive down the interest rate. This has the effect of making treasuries less desirable and other more risky investments the alternative at lower rates of return.

In my view, buying the 30 year futures, or TLT is the way to go. Free money direct from the federal reserve.

Where do they (they=fed) get the cash to buy treasuries?

riskfreetrading · Nov 18, 2008

Quote from LVtrader35:

No offense, but this is a TERRIBLE investment...you are much better off buying a good MLP (master limited partnership) and get a solid dividend that has a great tax advantage...the 30 is just a bad idea.

1. What if the master LL goes bankrupt.
2. I have read that they will tax them in canada (that is where they originated).
3. Do you know where to get a list of master LLs.
4. Thanks.

RiceRocket · Nov 19, 2008

I didn't realize how many idiots were on ET until this thread.

Ticktaker · Nov 19, 2008

Quote from RiceRocket:

I didn't realize how many idiots were on ET until this thread.

Amen, brother. The dirty 30 has been strong as shit all week.

RiceRocket · Nov 19, 2008

Quote from riskfreetrading:

Where do they (they=fed) get the cash to buy treasuries?

The fed will be monetizing the debt, instead of sterilization. The whole point of this process is to in fact, bring back some inflation. This is a deflation fighting policy.