How sweet would have it have been to buy that big Treasury sell-off when the FOMC minutes...


How sweet would have it have been to buy that big Treasury sell-off when the FOMC minutes indicated no imminent QE? The long bond has moved in a straight line right back to where it was as no QE means stocks fall, which puts QE back on the table and the bid back in Treasurys. Remember the cycle. The 30-year off 5 bps to 3.31%.
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Comments (5)
  • dieuwer
    , contributor
    Comments (2924) | Send Message
     
    Indeed, QE is negative for bonds, while Operation Twist was positive for long-bonds.
    However, it seems that we will have NEITHER. Meaning, the bid under the long-bond will vanish by June. Subsequently, long-bonds will start to underperform bills.
    5 Apr 2012, 08:41 AM Reply Like
  • AlbyVA
    , contributor
    Comments (839) | Send Message
     
    Just about all bonds have negative real yields. Buying bonds is a "GUARANTEED" loss on your money. And the more money the Fed pumps into treasuries, the more the pump is primed for inflation that can get away from them in a second.

     

    Bonds are the new Bubble. First the .COM, then Housing. Now its Bonds and recent weakness and quick declines have shown the glass is starting to crack.
    5 Apr 2012, 08:47 AM Reply Like
  • stocknerd
    , contributor
    Comments (1503) | Send Message
     
    10 year T bill under $2 soon.
    5 Apr 2012, 12:04 PM Reply Like
  • bbro
    , contributor
    Comments (11223) | Send Message
     
    Note you mean
    5 Apr 2012, 01:43 PM Reply Like
  • AlbyVA
    , contributor
    Comments (839) | Send Message
     
    You mean 2%, not $2?

     

    In the short term, it might touch 2% from headline news of the economy ebbing and with Europe's issues. But long term, it is unsustainable.

     

    Didn't anybody study Milton Friedman?
    6 Apr 2012, 09:22 AM Reply Like
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