…sanguine. For the first time in the long time I’m starting to wonder if inflation-indexed bonds won’t provide a better deal than nominal bonds over the next 5 years… Kash…

…asset price inflation. Housing prices have probably been inflated thanks to all of this liquidity (as many people have noted), but so have bond prices. As a result, bond yields…

…own a US government bond vs. if the US government owns a US government bond. I thought John Maynard Keynes explained all this 70 years ago! I doubt Mr. Frum…

…in place since the 1983 Soc. Sec. reforms. OK, $100 government bond in my right pocket pays a higher return than a $100 government bond in my left pocket in…

…July 1. The correlation coefficient for these two series is -.77. The most plausible explanation is that the bond market is indeed worried that higher oil prices will noticeably dampen…

…example, if the social security system sells a dollar of bonds and purchases a dollar of equity, private investors would buy a dollar of bonds and sell a dollar of…

…a string of adverse shocks. But in the process of returning the stance of policy to a more neutral setting, at least some of the capital gains on debt instruments…

…up, though they seem to have leveled off over the past week or so at their highest levels in about 2 years. The 10-year bond now yields around 4.8%, and…

…should be. My two favorite explanations: 1. Vast quantities of foreign demand for US bonds is keeping bond prices high. As the Treasury report mentioned in the post below indicates,…

Why are Bond Yields Still so Low? One of the fundamental conclusions of basic macroeconomics is that when the economy booms, interest rates should rise. That’s because when the economy…