Like many inflated asset prices, US treasuries have been dealing with the bubble question for awhile now. It feels like a crowded trade and we're heading into historic low yields based on everyone having similar thinking. While I'm not saying everyone is wrong (I fear the US is already deflationary, per previous posts), I'm just saying the upside potential from here is very limited (could the 10 year go sub 2%??), whereas a mean reversion would be a disaster for anyone with long duration.
Barry Ritholtz has a good post at The Big Picture regarding Bloomberg's Chart of the Day from yesterday. It puts the US Bond price appreciation in a perspective I think almost anyone can understand: the dot-com bubble. Enjoy.
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