Bill Gross Says ‘Bonds, Like Men, Are In A Bear Market’, Endorses Oprah, Says He’ll Put The Toilet Seat Down If He Needs To
Earlier this week, Bill Gross called it as 10-year yields hit 9-month highs on supply jitters and an overnight decision by the BoJ to cut purchases of 10-25Y JGBs:
Well, that was looking pretty prescient come Wednesday morning when Bloomberg broke the story that China is apparently pondering a halt to U.S. Treasury purchases.
Beijing has since suggested that was "fake news", but whatever the case, ol' Bill is sticking with the bond bear market call and he also wants you to know that bonds ar
Lacy Hunt says yields still go down and has a better track record….10-yr to 1/2% within the next year and then reversal?
its possible, esp given EVERYONE now KNOWS with certainty that bond yields are going. like todays papers, its all inflation etc but really tlt has been coming down for weeks and china’s comment was political…they HAVE to buy tsy’s. decent chance that 1/10 was the bottom, and the front page-ness was the point of peak pessimism in the very short term.
The bond market is a huge albatross around our necks and China knows it. Yesterday’s little reminder was just a pin prick to tell the whole financial and political world that we (China) holds most of the cards. The reaction to just the hint of a pull back sent that market (bonds) into a nose dive. China is now in control of the US economy and did just use it as a weapon.
If they walk, in a matter of DAYS we could lose 50% of our bloated paper wealth, that was a warning shot to tell Trump to get in line or we drop your presidency like a rock.
The Chinese will continue to cut their losses as they jettison their US dollars and the day of doom is approaching when they don”t buy our lifestyle for us.
It won’t be bullets that takes down Amerika it will be our own hubris.