MA
markmoos
Rep: 10
Posts: 2
TLH- 10-20 YEAR BOND IS ON A DOWN TRAND
This trend seems to be more then just a short-term technical correction.
I think three factors explain this phenomenon:
1) if investors have a Win Win situation .
why should they be satisfied with a yield of about 2% for 10 years?
Why not invest in stocks? After all, there is a chance that the
economy will improve and they will get higher profits in the stock market .
R/R - risk is clearly in their favor.
2) the Fed also announced explicitly that he wanted a
certain rise in inflation towards the 2% per year.
If he would attain this objective, there's definitely reason to
buy inflation-indexed assets.
3) the Fed's policy may couse large organizations, even countries, to think twice about the value of the Dollar, and financial assets denominated in it.
This trend seems to be more then just a short-term technical correction.
I think three factors explain this phenomenon:
1) if investors have a Win Win situation .
why should they be satisfied with a yield of about 2% for 10 years?
Why not invest in stocks? After all, there is a chance that the
economy will improve and they will get higher profits in the stock market .
R/R - risk is clearly in their favor.
2) the Fed also announced explicitly that he wanted a
certain rise in inflation towards the 2% per year.
If he would attain this objective, there's definitely reason to
buy inflation-indexed assets.
3) the Fed's policy may couse large organizations, even countries, to think twice about the value of the Dollar, and financial assets denominated in it.