What the hell is going on in the bond market?

[Sig]

Yes US treasuries pay coupons.

T-bills are zero coupon, Treasury bonds and notes pay coupons, you're right, and may also trade at a premium or discount to their par to reflect the current rate vs the rate when they were issued.

 

[GRULSTMRNN]

So when stating how the return on a treasury bond is derived the coupon rate is necessary aside the other variables you earlier stated. That's all I meant to add. You omitted the coupon rate.

T-bills are zero coupon, Treasury bonds and notes pay coupons, you're right, and may also trade at a premium or discount to their par to reflect the current rate vs the rate when they were issued.

 

[maxinger]

Title ought to be :

What the heaven is going on in the bond market ?!?!?

Because of all the futures like
index, metals, currencies, agricultural products, financial, energy ....

bond futures is the best to day trade.

 

[Sig]

So when stating how the return on a treasury bond is derived the coupon rate is necessary aside the other variables you earlier stated. That's all I meant to add. You omitted the coupon rate.

Got it. Agree completely, thanks for the correction.

 

[RGLD]

Does anyone speculate that the bonds are going up because money is flowing out of China and HK? How much do you think China is causing bond prices to rise?

 

[bone]

Does anyone speculate that the bonds are going up because money is flowing out of China and HK? How much do you think China is causing bond prices to rise?

Equities go down fixed income goes up - been that way since forever.

 

[JamesJ]

Equities go down fixed income goes up - been that way since forever.

Yup.
But i don't really see how this can keep up with this huge spiraling down of fixed income rats into negative territory.
When i need to invest money and need to get some kind of return (i.e. pension funds) i cannot invest in say 30yr german Bunds with negativ yields. So i just have to move to risky assets such as equities. And with current dividend returns they are imho nowhere near expensive given the extremely low long term rates ond fixed income.

Btw. CAPM with this negative (long term) rates lead to a much higher valuation of equities. (future dividends are kind of compounded into todays value)

 

[bone]

Yup.
But i don't really see how this can keep up with this huge spiraling down of fixed income rats into negative territory.
When i need to invest money and need to get some kind of return (i.e. pension funds) i cannot invest in say 30yr german Bunds with negativ yields. So i just have to move to risky assets such as equities. And with current dividend returns they are imho nowhere near expensive given the extremely low long term rates ond fixed income.

Btw. CAPM with this negative (long term) rates lead to a much higher valuation of equities. (future dividends are kind of compounded into todays value)

There’s Corporate Bonds and Municipal Bonds - massive markets with substantially higher yields than Sovereign Debt.

 

[easymon1]

bond futures is the best to day trade.

mr maxinger, whaddayathink?

zb stab in the dark

PaPeR TrAdE
30m chart short from 160 10, target 159 29
stop 160 25
PaPeR TrAdE

That was quick!
https://elitetrader.com/et/threads/cardiovascular.335482/

 

[maxinger]

mr maxinger, whaddayathink?

zb stab in the dark

PaPeR TrAdE
30m chart short from 160 10, target 159 29
stop 160 25
PaPeR TrAdE

View attachment 208891
View attachment 208892
That was quick!
https://elitetrader.com/et/threads/cardiovascular.335482/

huh? counter trend trading?
It went down initally due to powerful tweet.
Now Bonds are going north.

I prefer XUB bond which is more volatile.
ZB moves slower than snail and bean sprout growth rate.