Posted by DigiNomad on 1st of Apr 2024 at 11:25 am
Bond vigilantes - looks like maybe they are finally showing up
and demanding higher rates to lend to the US Gov. I thought they
all got taken out back and shot in 2009. Clock is now ticking
for the Fed to turn QE back on ASAP. They only control one
rate...until they decide to print dollars and buy as many parts of
the curves as they feel is necessary to bail out the banks and the
Janet. I have a sneaking suspicion they won't wait long in a
contested election year.
Posted by DigiNomad on 1st of Apr 2024 at 12:00 pm
I was definitely participating in the "end of quarter window
dressing" shenanigans last week. Gov Bonds are typically a
safe place hide out for a couple of days while making decision on
allocations and remaining fully invested. I went back and
forth on TLT vs the shorter end (IBTE, etc)...I finally settled on
a 20/1, IBTE/TLT allocation after deciding that playing for the
potential equity appreciation in TLT wasn't worth it with the Gov
out of control like it has been. Close call. Haha.
Who knows - maybe what we're seeing today is simply the
window dressing unwind.
Bond vigilantes - looks like
Yields and USD moving up some here and futures fading ...
Posted by DigiNomad on 1st of Apr 2024 at 11:25 am
Bond vigilantes - looks like maybe they are finally showing up and demanding higher rates to lend to the US Gov. I thought they all got taken out back and shot in 2009. Clock is now ticking for the Fed to turn QE back on ASAP. They only control one rate...until they decide to print dollars and buy as many parts of the curves as they feel is necessary to bail out the banks and the Janet. I have a sneaking suspicion they won't wait long in a contested election year.
I was definitely participating in
Posted by DigiNomad on 1st of Apr 2024 at 12:00 pm
I was definitely participating in the "end of quarter window dressing" shenanigans last week. Gov Bonds are typically a safe place hide out for a couple of days while making decision on allocations and remaining fully invested. I went back and forth on TLT vs the shorter end (IBTE, etc)...I finally settled on a 20/1, IBTE/TLT allocation after deciding that playing for the potential equity appreciation in TLT wasn't worth it with the Gov out of control like it has been. Close call. Haha.
Who knows - maybe what we're seeing today is simply the window dressing unwind.
Pretty red day in many
Posted by foody518 on 1st of Apr 2024 at 12:15 pm
Pretty red day in many utilities names, too, the rates connection?
Yep, utes are mostly bond
Posted by DigiNomad on 1st of Apr 2024 at 12:18 pm
Yep, utes are mostly bond proxies. The yield they offer looks less attractive when the "risk free" Gov rates rise.