Fear Of The Fed

It seems that the main reason for the hate of long Treasuries is the fear that, any moment now, without warning, the Fed’s admittedly insane “QE” pumping will yield a surge in inflation and a collapse in the US dollar – and, of course, long Treasuries.

The result of this fear is that long US Treasuries are much cheaper than their foreign counterparts, the sole exception being the UK. Just cast your eyes on the following table of 10-year sovereign yields and tell me that the long Treasury is not a screaming bargain:

20140529_10Y2_0

Source: Bloomberg, click for a larger version.

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  • By Not Yet | Financial Reality on June 3, 2014 at 11:50 am

    […] by an epic collapse in Treasury yields. I expect the same as Treasuries fall into line with global sovereign bond yields, probably with the 30-year bottoming out sub-1.5%. Anyway, here’s the chart, thanks to zero […]

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