Bubble in U.S. Treasuries?
25 August 2010, 04:25 PM
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Bubble in U.S. Treasuries?
Was just wondering if anyone else can understand why U.S. Treasuries rally whenever there's bad economic news out? Is this just because it has always been considered a 'safe haven', even though bad economic news is decreasing the likelyhood of being paid back by the U.S. government (especially in current circumstances)? Or is it simply people trading them short-term because they're doing well at the moment?
Also, the worse the economic news, the more likely they are to use more highly inflationary stimulus policies, which is bad for the dollar and obviously in turn bad for the bonds promising payment of dollars.
Am I missing something? What are your thoughts?
Also, the worse the economic news, the more likely they are to use more highly inflationary stimulus policies, which is bad for the dollar and obviously in turn bad for the bonds promising payment of dollars.
Am I missing something? What are your thoughts?
Last edited by GlesgaKiss; 25 August 2010 at 04:37 PM.
25 August 2010, 04:30 PM
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I'm close to needing a dump.... do I go now and risk a half arsed effort if you pardon the pun or do I risk the drive home hoping not to get stuck in traffic to allow me a full and relaxed unload.
28 August 2010, 12:16 PM
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