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Even as China, Russia, the Fed, and Bill Gross (apparently) shun or slow their purchases of...

Even as China, Russia, the Fed, and Bill Gross (apparently) shun or slow their purchases of Treasuries, yields continue to fall. If the economy remains weak and global financial conditions shaky, buyers will emerge for U.S. paper.
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Comments (2)
  • Duude
    , contributor
    Comments (3389) | Send Message
     
    Yields drop from these levels without any more quantitative easing? Now, that would be a neat trick.
    20 Jun 2011, 10:05 AM Reply Like
  • radicall
    , contributor
    Comments (534) | Send Message
     
    QE caused rates to go up.. so it is natural that end of QE will cause them to go down.

     

    But at these levels - they carry more long term risk than stocks. Buy stocks or high yield instead. You could also sell credit protection on high yield (basically earn HY-treasury rate) and protect yourself from interest rate risk.

     

    Of course not everyone is comfortable owning credit risk on high yield when the news flow is so negative, but to me - that is when you have the best risk reward. (RYHGX is a mutual fund that does just this)
    20 Jun 2011, 05:57 PM Reply Like
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