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Realistbear

Treasuries Market Prices In Deflation

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http://www.businessweek.com/news/2011-06-23/treasuries-gain-most-in-a-week-as-traders-cut-bets-on-inflation.html

Bloomberg
Treasuries Gain Most in a Week as Traders Cut Bets on Inflation
June 23, 2011, 2:39 AM EDT
By Wes "Wesley" Goodman
June 23 (Bloomberg) -- Treasury 30-year bonds rose the most in a week on speculation the end of the Federal Reserve’s $600 billion debt-purchase program this month will depress commodity prices and slow inflation..../
“Inflation expectations are coming down, and that will put downward pressure on yields,” said Yoshiyuki Suzuki, Tokyo- based head of fixed income at Fukoku Mutual Life Insurance Co., which has the equivalent of $69.6 billion in assets. “Commodity prices have peaked with the end of QE2.” Fukoku bought Treasuries a few weeks ago, Suzuki said.
.../
The U.S. plans to sell $7 billion of 30-year
TIPS
today. The previous auction of the securities in February drew a 2.19 percent yield, and the rate has
dropped to 1.81 percent
.
Japanese 10-year bonds yields dropped 1.5 basis points to 1.105 percent, matching the least since November. The Ministry of Finance sold 2.425 trillion yen ($30.5 billion) of two-year notes today at an average yield of 0.152 percent,
the lowest level at the monthly auctions since October.

Stay long on your bond funds muchachos! Deflation cometh...................... :o *

* :D

Edited by Realistbear

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Give it a rest ffs.

Not getting a rise in rates is not the same as deflation. It is just no increase in the inflation that already exists.

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US treasuries are the big short bet of a lifetime. There must be so much money on the sidelines waiting for this one to pop.

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Give it a rest ffs.

Not getting a rise in rates is not the same as deflation. It is just no increase in the inflation that already exists.

Speak to the FT about it and that nice Japanese Gentleman with the rude name--they published the story. And the FT don't usually publish a lot of nonsense and the bond market does tend toward accuracy as a predictor of what is coming down the road.

Gone long on metally inflation hedges by any chance? ;)

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Speak to the FT about it and that nice Japanese Gentleman with the rude name--they published the story. And the FT don't usually publish a lot of nonsense and the bond market does tend toward accuracy as a predictor of what is coming down the road.

Gone long on metally inflation hedges by any chance? ;)

Metals do better in times of low real inflation anyway, or have you to busy linking articles over the last 3 years to notice?

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Speak to the FT about it and that nice Japanese Gentleman with the rude name--they published the story. And the FT don't usually publish a lot of nonsense and the bond market does tend toward accuracy as a predictor of what is coming down the road.

Gone long on metally inflation hedges by any chance? ;)

The bond market misses absolutely everything of importance.

It certainly misses inflation every single time, but it's also failed to spot such small things as looming world wars, mass terrorism, global trends such as computing etc etc

Bond are safety investments for people who can't think straight and don't notice they always lose money.

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US treasuries are the big short bet of a lifetime. There must be so much money on the sidelines waiting for this one to pop.

In a crisis though, the most desirable thing in the world is the thing that debts are denominated in. (scepticustm )

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Since Benny whacked the bond vigilantes with his printing press there is only one vigilante left.

Its golden and it ain't telling warning you of deflation.

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In a crisis though, the most desirable thing in the world is the thing that debts are denominated in. (scepticustm )

History says thats bullcr*p as every paper currency has collapsed inspite of it being the currency its worthless and unpayayable debts are denominated in.

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In a crisis though, the most desirable thing in the world is the thing that debts are denominated in. (scepticustm )

2MillionRM23Jul23F.jpg

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No Tepid Thursday thread today.

Pound is down below $1.60. FTSE down a pretty big 50 points, and falling. UK 10yr Gilts yielding lower than 3.2%, and yields on the PIGS showing large gains, including Italy and Spain. Something is rumbling.

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Give it a rest ffs.

Not getting a rise in rates is not the same as deflation. It is just no increase in the inflation that already exists.

exactly

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History says thats bullcr*p as every paper currency has collapsed inspite of it being the currency its worthless and unpayayable debts are denominated in.

Well gravityisaloser, we're all doomed. Every star will extinguish, every life form will die, every government, every fiat currency will fall out of favour.

Timing, at the end of the day is of the essence.

So what exactly do YOU think will happen, and when?

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