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For a concise discussion on the state of play of sovereign...

  1. 7,580 Posts.
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    For a concise discussion on the state of play of sovereign bonds, the below newsletter is pretty well presented.

    http://d21uq3hx4esec9.cloudfront.net/uploads/pdf/140907_TFTF.pdf

    In a nutshell ..... huge sums of money are buying sovereign bonds purely to get some yield. When central banks are applying near zero interest rates the money will happily go into a bond purchase yielding even 2%.

    Government debt is being monetized, have no doubt about that.  ... if money is not going to productive investment into the real economy it beats me how anybody thinks this is going to have a happy ending.


 
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