Explain to me why the TLT (20 yr treasury bond) is at an all time high

pmcollectour

Please, in the simplest terms possible.

roadrunner

$250 TRILLION notional in US TBTF bank held otc interest rate swaps that are linked with US Bonds (ie massive leverage on opaque items that are inaccurately valued).

Without support from the above, it couldn't have been done. World-wide, IR swaps total around $900 TRILL. In simplest terms, "rigged markets." And specifically, rigged IR's.

rawteam1

more buyers than sellers...

derryb

buyers believe US bonds to be the best safehaven. Time, in my opinion, will eventually prove them wrong. Monetizing the debt makes the dollars they are cashed in for worth less than the dollars that bought them. A true safehaven will protect value and counter dollar destruction.

roadrunner

Problem is that too many of the "buyers" are the big banks via opaque derivative contracts that have no end-user....other than themselves.
Just another form of the issuers creating their own demand.

Musky1011

They are not going to pay anyways

MsMorrisine

a couple of factors.

people are thinking the us is still a safe haven and buying them like crazy. that drives prices up and the effective yields down. (you understand that part?)

also operation twist: the Fed is buying long dated maturities and selling short dated ones to encourage growth by lowering borrowing costs.

piecesofme

Said it before. The $ is still the prettiest pig in the contest.

jmski52

fantasy currency

derryb

<< <i>Said it before. The $ is still the prettiest pig in the contest. >>


until a major rainstorm washes off the lipstick.

piecesofme

lol derryb. You're right. Then $he really gets ugly lol

MsMorrisine

should be heading lower now though.

can't explain it if it is not

percyb

<< <i>Please, in the simplest terms possible. >>



Fear of economic catastrophe.

Twinturbo

Us $ only safe and secure haven

Everything else utter crap. Dump it burn it and run

derryb