Relatively Attractive Alternatives

Relatively Attractive Alternatives

Suddenly, there is an alternative. Or at least that's one way to look at the backup in bond yields. Treasurys' performance in the first quarter was among the worst since 1980. 10-year yields rose some 80bps as the reflation trade kicked into high gear and growth expectations improved amid fresh stimulus and rapid vaccine rollout in the US. Indeed, Q1 was defined by what, on one benchmark, was the first bond bear market in four decades. Although benchmark US yields ended the week around 1.72
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2 thoughts on “Relatively Attractive Alternatives

  1. The Biden admin is floating a total infrastructure package of $4 trillion. If it manges to get even a third of that, I’d bet the yield on the 10yr is going to break 2.0 before it falls back below 1.5. But I’ve been saying that for a while. Trade accordingly.

  2. Good comment- and to the point. But also keep in mind, that the infrastructure part of the spending is going to be paid with higher taxes, and that the proposed infrastructure spending is mooted to take place over 8-10 years.

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