What the hell is going on in the bond market?

Discussion in 'Financial Futures' started by RGLD, Aug 28, 2019.

  1. Sig

    Sig

    T-bills are zero coupon, Treasury bonds and notes pay coupons, you're right, and may also trade at a premium or discount to their par to reflect the current rate vs the rate when they were issued.
     
    #31     Sep 2, 2019
  2. So when stating how the return on a treasury bond is derived the coupon rate is necessary aside the other variables you earlier stated. That's all I meant to add. You omitted the coupon rate.

     
    #32     Sep 2, 2019
  3. maxinger

    maxinger

    Title ought to be :

    What the heaven is going on in the bond market ?!?!?

    Because of all the futures like
    index, metals, currencies, agricultural products, financial, energy ....

    bond futures is the best to day trade.
     
    #33     Sep 2, 2019
  4. Sig

    Sig

    Got it. Agree completely, thanks for the correction.
     
    Last edited: Sep 3, 2019
    #34     Sep 3, 2019
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  5. RGLD

    RGLD

    Does anyone speculate that the bonds are going up because money is flowing out of China and HK? How much do you think China is causing bond prices to rise?
     
    #35     Sep 3, 2019
  6. bone

    bone ET Sponsor

    Equities go down fixed income goes up - been that way since forever.
     
    #36     Sep 3, 2019
  7. JamesJ

    JamesJ

    Yup.
    But i don't really see how this can keep up with this huge spiraling down of fixed income rats into negative territory.
    When i need to invest money and need to get some kind of return (i.e. pension funds) i cannot invest in say 30yr german Bunds with negativ yields. So i just have to move to risky assets such as equities. And with current dividend returns they are imho nowhere near expensive given the extremely low long term rates ond fixed income.

    Btw. CAPM with this negative (long term) rates lead to a much higher valuation of equities. (future dividends are kind of compounded into todays value)
     
    #37     Sep 3, 2019
  8. bone

    bone ET Sponsor

    There’s Corporate Bonds and Municipal Bonds - massive markets with substantially higher yields than Sovereign Debt.
     
    #38     Sep 3, 2019
  9. easymon1

    easymon1

    Last edited: Sep 12, 2019
    #39     Sep 12, 2019
  10. maxinger

    maxinger

    #40     Sep 12, 2019
    easymon1 likes this.