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

pmcollectourpmcollectour Posts: 1,211 ✭
in Precious Metals
Please, in the simplest terms possible.

Comments

  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    $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.

    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • rawteam1rawteam1 Posts: 2,472 ✭✭✭
    more buyers than sellers...
    keceph `anah
  • derrybderryb Posts: 36,790 ✭✭✭✭✭
    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.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    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.
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • Musky1011Musky1011 Posts: 3,899 ✭✭✭✭
    They are not going to pay anyways
    Pilgrim Clock and Gift Shop.. Expert clock repair since 1844

    Menomonee Falls Wisconsin USA

    http://www.pcgs.com/SetRegistr...dset.aspx?s=68269&ac=1">Musky 1861 Mint Set
  • MsMorrisineMsMorrisine Posts: 33,012 ✭✭✭✭✭
    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.


    Current maintainer of Stone's Master List of Favorite Websites // My BST transactions
  • piecesofmepiecesofme Posts: 6,669 ✭✭✭
    Said it before. The $ is still the prettiest pig in the contest.
    To forgive is to free a prisoner, and to discover that prisoner was you.
  • jmski52jmski52 Posts: 22,820 ✭✭✭✭✭
    fantasy currency
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • derrybderryb Posts: 36,790 ✭✭✭✭✭


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


    until a major rainstorm washes off the lipstick.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • piecesofmepiecesofme Posts: 6,669 ✭✭✭
    lol derryb. You're right. Then $he really gets ugly lol
    To forgive is to free a prisoner, and to discover that prisoner was you.
  • MsMorrisineMsMorrisine Posts: 33,012 ✭✭✭✭✭
    should be heading lower now though.

    can't explain it if it is not
    Current maintainer of Stone's Master List of Favorite Websites // My BST transactions
  • percybpercyb Posts: 3,324 ✭✭✭✭


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



    Fear of economic catastrophe.
    "Poets are the unacknowledged legislators of the world." PBShelley
  • TwinturboTwinturbo Posts: 493
    Us $ only safe and secure haven

    Everything else utter crap. Dump it burn it and run
  • derrybderryb Posts: 36,790 ✭✭✭✭✭
    image

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

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