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main1event
18th November 2008, 08:17
When there is market turmoil the old school method means rush to short term bonds. Theres a problem however the 91 day T-Bill is yielding 1/5 of a percent. Thats saying people are so afraid that people just want to get their money back, they are not concerned about profit.

Here's something that just occurred to me, say you just bought those T-Bills in the last 2 months during the dollar rally. Now all of a sudden the dollar starts pulling back. Those bonds get paid in USD, so effectively you are getting paid less.

In a stable market going to bonds makes sense but not in bazzaro land.