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government bonds trade opposite interest rates. Interest rates down TLT up. Interest rates down cash needs more yield comes running to tlt. A lot of data out th

by jarsin 4y ago

government bonds trade opposite interest rates. Interest rates down TLT up. Interest rates down cash needs more yield comes running to tlt. A lot of data out there that stocks crash after the pivot meaning they see the pivot as a recession and go racing into safety. Doesn't all happen in a straight easy line though. Headline from decemeber and I checked tlt and its near top of etf inflows ytd. TLT saw its second-largest inflow ever, with a gain of $1.5 billion, Bloomberg reported.

shrimpx 4y ago
Thanks! TLT is only yielding 2.7% is that considered good in 6% inflation? I guess people bet inflation will go back to 2%?
- jarsin 4y ago
  Yes a recession should kill inflation as many lose jobs and can't spend. Thus the reason the FED is trying to force a recession.