I Had A Dream To Sell ‘Em Treasuries
In my feverish stupor from a bug of sorts, according to the doctor, you can’t help but have a bizarre dream.
And the strangest dream I did have today. I dreamt in a world of fluctuating sentiments, we were lost in the fervor of the moment and lost sight of the big picture. And the biggest liquid asset of the world the UST is a hoax. I shudder at my own audacity, making this sweeping statement in these troubled times. But my dream will be heard.
If there is only 1 asset with growing supply, it looks like its bonds. There is no shortage of that, along with all the money to buy them.
Things are slowing, grow is anemic, unemployment is high, inflation is benign. It all calls for more easing and more stimulus. Recurring headlines have a brain wash effect. And we have seen Japanese brainwashed into buying tbills which only yield enough to buy a cup of Starbucks a week and still thinking its a good deal.
Now we have Swiss tbill yields -0.8%, 2Y Germany Schatz at close to 0% and Dutch at -0.013% cut off yesterday.
I am not going to argue with the experts who will saying ignoramus and laymen should keep their traps shut and let the professsionals do their work.
So I will end here. With a table of the 10y yields from around the world and thinking how many cups of Starbucks should I budget with my meagre savings and giving instructions to my banker to buy me some PST US (ETF) tonight at about 28 bucks.
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