“I do not think U.S. Treasuries are safe in the medium-and long-run,” Yu, a member of the state-backed Chinese Academy of Social Sciences, wrote yesterday in an e-mailed response to questions. China is unable to sell the securities in a “big way” and a “scary trajectory” of budget deficits and a growing supply of U.S. dollars put their value at risk, he said.
As Jim suggests, all things end. In the case of bonds, the end will come as soon as the western world recognizes the deteriorating trends since 2002.
While the western world fills the technical analysis (TA) press room to capacity while waiting for the canary (in the coal) to signal something in the bond market, they amid the confusion of the commotion miss the fact that it died about eight years ago.
Long-Term U.S. Government Bonds Total Return Index (LTGBTRI):
Long-Term U.S. Government Bonds Total Return Index (LTGBTRI) to Gold Ratio:
Still, investors wait with bated breath the next government economic data release that suggests with the help of endless revisions that recovery remains on track.
It is inevitable that another round of economic finger pointing will take place as economic reality fails to meet expectations. That finger might be better served pointing inward rather than outward.
Source: bloomberg.com
0 comments:
Post a Comment