My view has been for quite some time that in December 2008, when the 10 Year Treasury note yield went down to 2.08%, that was a kind of a generational low. That this was a secular low, and that from here onwards yields will go up, either because of inflation / better economy or because of the huge deficit. Or a combination thereof.
Increasingly investors begin to realize that between the republicans and the democrats...the republicans don`t want to increase taxes and the democrats do not want to cut spending, so the deficit in my opinion will stay above 1 Trillion dollars for as far as the eye can see. -
in Bloomberg TV
Related: iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT) , ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT), iShares Lehman 7-10 Yr Treas. Bond (ETF) (NYSE:IEF)
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