T-bond price is now in historical high. Let's assume recession is coming and the stock market is falling in the coming months, how much higher can T-bond still go based on the fundamental analysis?
Curr CTD yield is smth like 2.37. JL98 (the comparable JGB, Sep 2027 maturity) yields 1.48, so that's smth like 90bps. If my arithmetic is correct, that's worth arnd 15 points.
Whoever is buying US Government, I just do not understand. It must be a lemming effect. It's practically guaranteed to fail, either due to default or inflation.
maybe its China looking for US to default this way they can take over in one swoop no war or anything...
srec is right but is ignoring one of the fundamental laws of markets. â âThe market can stay irrational a lot longer than you can stay solvent!ââ¦