XJO 0.68% 7,830.5 s&p/asx 200

Mon, 15 June - Anything Can happen, page-92

  1. 2,721 Posts.
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    When they introduce Yield curve control, i will take that as a sign that bond bull market is done.
    ST debt should yield lower and should be allowed to be sold at market rates. At least so that bond holders can measure the risk. long dated bonds need to compensate for extended periods of risk even if the risks remain the same by having a much higher yield..
    Not anymore - the FED will decide the yield of all bonds if they implement YCC. If they decide there is so much debt out there that it cannot be made to pay back interest let alone principal back even on 30 yr - then what? The FED may become the only buyer in the market and the $$ will find a home elsewhere.
    Nothing is risk free now but assets of all kinds could get a boost if the FED owns the bond market and that $$ goes elsewhere.
 
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