
Recession Talk Returns: Why Economists Are Freaking Out About Bonds - pseudolus
https://www.forbes.com/sites/rachelsandler/2019/05/31/recession-talk-returns-why-economists-are-freaking-out-about-bonds/#4a46c3b8a38b
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ohiovr
What I get out of it: tons of people are piling into long dated treasuries to
lock in some kind of return or just as a way to get anything back. The buying
pressure affects auction bids for the treasuries where the price gets bid down
with more demand. People want to have a return for longer periods than a few
months because they feel higher interest rates in the lower end won't last
anywhere near ten years.

The bond market is large, these are big moves. Rather than try to chase higher
yields in places that are prone to bust, investors need to preserve capital
firstly, gains come second.

Right now the 2 month treasury is only 1 basis point less yield than the 20
year. Currently my money market savings pays more than the 20 year.

Greenspan said after the rally look out below.

