3 ms·
I'm not going to buy any bonds in the current environment: Swedish 3-month bills yield -0.5%, 10-year bonds yield -0.2%. Whatever the historical data says, I ca
by kryptiskt 7y ago
I'm not going to buy any bonds in the current environment: Swedish 3-month bills yield -0.5%, 10-year bonds yield -0.2%. Whatever the historical data says, I can't see anyone buying at those prices unless they have to.
- paulpauper 7y agoyeah but long term treasury and investment-grade medium duration corporate bonds are still yielding 2-4% . Ppl thought bonds were expensive in late 2018, and now in 2019 LQD, a bond etf, is up 15%.
- buttcoinslol 7y agoThere are a lot of entities with enormous sums of money who must buy quality debt at whatever yield is available, and they dwarf retail's appetite for bonds by several orders of magnitude
- BukhariH 7y agoWell, if you’re a US based investor then it might not be a bad idea to pick up some of those -0.5% yield bonds when you consider the effect of currency hedging. Conversely, for EUR based fund managers you’ll likely be better of sticking to negative yielding EUR denominated bonds vs treasuries. Source: https://www.forbes.com/sites/vineerbhansali/2019/06/17/trading-sardines-the-case-of-currency-hedged-negative-yielding-bonds/ https://www.forbes.com/sites/vineerbhansali/2019/06/17/tradi... https://www.ft.com/content/85c56472-bdcb-11e9-b350-db00d509634e https://www.ft.com/content/85c56472-bdcb-11e9-b350-db00d5096...