Those sub 5% yields can’t last - just a temporary refuge for those fleeing stocks. It should be interesting to watch how the new issues of Treasuries fare should the Fed cut 25 BPS more and lets the dollar continues its inexorable slide whilst foreign investors become more choosy. Yields might pop up surprisingly then, proving the flight to bonds “safety” is a relative and transitive thing.
New issues? Treasuries trade all day long, and if you haven’t noticed, have hung very tight. There is no overbalance of peoople selling them off, pure bs, or the yields would be higher.
The day the fed cut, the rates made a small surge higher, and people simply bought back in, the higher yield. I agree though, it is AMAZING that rates have not gone higher.
Generally, the smart money in the market is in the bond side. What they know must be good, because if all this dollar trashing stuff was true, we’d see at least 6% by now.
I do have my suspicions and thoughts why the bonds are NOT going higher... but you’d all want to crucify me, and call me a dreaming stupid idiot. Fine, y’all be that way...
Fleeing stocks? The markets are up 20% in the last 52 weeks and up 12% YTD. If that is fleeing stocks than I say bring on more of fleeing stocks.