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Some investors face ‘colossal’ losses on U.S. Treasury bonds as yields surge
https://www.msn.com ^ | 2/24/2021 | Sunny Oh

Posted on 02/24/2021 11:27:36 AM PST by RomanSoldier19

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To: Seruzawa

“The entire media has the idea that continued prosperity for bond holders is critical and anytime they have losses the entire nation must mobilize to protect them.”

Cheat people out of nearly $30 trillion and at least one person is going to be very, very upset.


21 posted on 02/24/2021 12:15:52 PM PST by Brian Griffin
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To: RomanSoldier19

The 30 year bond index was 180 on Oct 1 2020. The index has been on a decline ever since and today the index is 161.


22 posted on 02/24/2021 12:16:25 PM PST by Presbyterian Reporter
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To: Brian Griffin
See Post #14.

If you lived in Zimbabwe or Venezuela 30 years ago and you bought a 30-year U.S. bond paying 3%, you made out very well.

23 posted on 02/24/2021 12:16:30 PM PST by Alberta's Child ("And once in a night I dreamed you were there; I canceled my flight from going nowhere.")
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To: Lurkina.n.Learnin

They are most likely shutting the Fed down for good. I’m hearing that just a little while ago the ability of the Fed to to transfer money to the banks has been stopped. I’m guessing this is the start of the rollout of the quantum financial system. If you go to the Federal Reserve site it shows most of their services are no longer available.


24 posted on 02/24/2021 12:17:15 PM PST by Georgia Girl 2 (The only purpose of a pistol is to fight your way back to the rifle you should never have dropped)
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To: Presbyterian Reporter

Here is the link for the above numbers

https://stockcharts.com/h-sc/ui?s=$USB


25 posted on 02/24/2021 12:19:42 PM PST by Presbyterian Reporter
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To: Alberta's Child
2. What ever made a U.S. Treasury bill paying 2% an attractive investment in the first place?

Earning 2% for a year or shorter maturity feels pretty decent right now.

Bill - year or less

Note - 2 to 10 years

Bond - longer than 10 years

26 posted on 02/24/2021 12:23:15 PM PST by Toddsterpatriot (TANSTAAFL)
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To: RomanSoldier19

bkmk


27 posted on 02/24/2021 12:30:23 PM PST by sauropod (#ImpeachMcConnell. #Resist. #NotMyPresident.)
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To: RomanSoldier19

That’s what happens when investing; sometimes you win, sometimes you lose. But, not if you’re the democrat backers of Solyndra.


28 posted on 02/24/2021 12:36:52 PM PST by Renkluaf
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To: Alberta's Child
How does anyone face a “colossal loss” in U.S. Treasury bonds?

Leverage. Including bond futures as well as margined purchases.

29 posted on 02/24/2021 1:06:32 PM PST by Pearls Before Swine
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To: Renkluaf
That’s what happens when investing; sometimes you win, sometimes you lose.

That’s what happens when _gambling_; sometimes you win, sometimes you lose.

"Investing" in the current wacko markets is gambling--the rules are that there are no rules.

Some folks need to figure that out the hard way.
30 posted on 02/24/2021 1:45:19 PM PST by cgbg (A kleptocracy--if they can keep it. Think of it as the Cantillon Effect in action.)
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To: cgbg
the rules are that there are no rules.

That’s not entirely true. The House wins ultimately. S as nd Rocko and Knuckles will convince you if necessary.

31 posted on 02/24/2021 2:00:23 PM PST by Sirius Lee (They intend to murder us. Prep if you want to live and live like you are prepping for eternal life)
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To: Alberta's Child
How does anyone face a “colossal loss” in U.S. Treasury bonds?

Bond prices are very volatile. If you have a long term bond and interest rates go up, the value of your bond drops. Sure, you'll get all the principal - many years later.

32 posted on 02/24/2021 2:24:08 PM PST by Fido969
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To: Georgia Girl 2
I’m hearing that just a little while ago the ability of the Fed to to transfer money to the banks has been stopped.

That's what you get for listening to Q.

33 posted on 02/24/2021 2:48:41 PM PST by DoodleDawg
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To: DoodleDawg

No actually its a fact.


34 posted on 02/24/2021 3:40:37 PM PST by Georgia Girl 2 (The only purpose of a pistol is to fight your way back to the rifle you should never have dropped)
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To: TexasGator

Stocks like AMD in 1 day do 2.60%.
I will play the market. Only way I have made money.


35 posted on 02/24/2021 3:42:38 PM PST by minnesota_bound (I need more money. )
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To: Georgia Girl 2
No actually its a fact.

Of course it is.

36 posted on 02/24/2021 3:48:24 PM PST by DoodleDawg
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To: minnesota_bound
"Stocks like AMD in 1 day do 2.60%."

Buckle your seatbelt!


37 posted on 02/24/2021 3:50:39 PM PST by TexasGator (Z1z)
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To: Fido969

“””Bond prices are very volatile. If you have a long term bond and interest rates go up, the value of your bond drops. Sure, you’ll get all the principal - many years later.”””


Unless that person paid more than par for the bond when they bought it.

Most of the bond funds bought bonds at 50% above par of 100 and those who bought those funds will have their clocks cleaned.


38 posted on 02/24/2021 3:57:21 PM PST by Presbyterian Reporter
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To: TexasGator

Once I get rich I will buy something stable.. : )


39 posted on 02/24/2021 4:12:53 PM PST by minnesota_bound (I need more money. )
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To: Presbyterian Reporter

“Most of the bond funds bought bonds at 50% above par of 100 and those who bought those funds will have their clocks cleaned.”

Nope. Those bonds are paying higher interest rates.


40 posted on 02/24/2021 4:20:44 PM PST by TexasGator (Z1z)
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