Waiting for the U.S. Treasury Bubble to Burst [View article]
As long as the Fed wants interest rates near zero, treasury investors need not worry... no matter how much paper is brought to market, the Fed will support it. BUT, eventually the economy recovers, and so do interest rates. I also expect a big bout of inflation at that time. That's the time holding a long term bond paying less than 3% is going to look silly.
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As long as the Fed wants interest rates near zero, treasury investors need not worry... no matter how much paper is brought to market, the Fed will support it.
Jan 11 13:37 pm
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All Comments by TBill »Waiting for the U.S. Treasury Bubble to Burst [View article]
BUT, eventually the economy recovers, and so do interest rates. I also expect a big bout of inflation at that time. That's the time holding a long term bond paying less than 3% is going to look silly.