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After Record Week, How Much Lower Can Bond Yields Go?
It's getting ridiculous again. IMO, the global fixed-income markets are in complete disarray, with unprecedented distortions created by central bank manipulations, with about a 6-mo lag in effect every time. Throw out the old tried-and-true rules for managing your bond investments in normalized times--- we be in unexplored territory: http://www.bloomberg.com/news/articles/2016-06-13/most-expensive-bond-market-in-history-has-come-unhinged-or-not
I'm sure Jeffrey Gundlach will address this,along with other ideas tomorrow.
Please join us for a live webcast titled "Timing and Strategy" hosted by Jeffrey Gundlach :
Mr. Gundlach will be discussing the economy, the markets and his outlook for what he believes may be the best investment strategies and sector allocations for the DoubleLine Total Return Bond Fund (DBLTX / DLTNX).
It's getting ridiculous again. IMO, the global fixed-income markets are in complete disarray, with unprecedented distortions created by central bank manipulations, with about a 6-mo lag in effect every time. Throw out the old tried-and-true rules for managing your bond investments in normalized times--- we be in unexplored territory: http://www.bloomberg.com/news/articles/2016-06-13/most-expensive-bond-market-in-history-has-come-unhinged-or-not
If you look at European rates they have been that way for a long time. I'm guessing that the USA is late to the party
@DanHardy Maybe we should just cash out of our bonds, denominated in fiat this and that, while the getting is good (sort of), and escape into the virtual world--- Bitcoin was up 9.5% yesterday.
update oh, great, German 10-yr just joined the club (Bloomberg):
Germany’s 10-year bond yield dropped four basis points, or 0.04 percentage point, to minus 0.018 percent as of 11:06 a.m. London time, meaning that investors who buy and hold the securities until their due date will get back less than what they paid.
I am guessing these unprecedentedly low rates are causing market distortions which will play out in some kind of coming crisis but I cannot get my arms around what it all means.
I am guessing these unprecedentedly low rates are causing market distortions which will play out in some kind of coming crisis but I cannot get my arms around what it all means.
I think the markets have trained us for such an outcome.
My guess is that these low rates are anticipating deflation.
Comments
http://www.bloomberg.com/news/articles/2016-06-13/most-expensive-bond-market-in-history-has-come-unhinged-or-not
Please join us for a live webcast titled "Timing and Strategy" hosted by Jeffrey Gundlach :
Mr. Gundlach will be discussing the economy, the markets and his outlook for what he believes may be the best investment strategies and sector allocations for the DoubleLine Total Return Bond Fund (DBLTX / DLTNX).
Tuesday, June 14, 2016 1:15 pm PT/4:15 pm ET/ 3:15 CT
Click Here to Register
https://event.webcasts.com/starthere.jsp?ei=1085758
update oh, great, German 10-yr just joined the club (Bloomberg):
Regards,
Ted
http://www.bloomberg.com/news/articles/2016-06-14/germany-s-10-year-bond-yield-declines-below-zero-for-first-time
My guess is that these low rates are anticipating deflation.