Bond crash continues.
Yields rise over 10 basis points on all 5+ year bonds.
TLT is now worth half of its value relative to the height of the pandemic, even a 30% discount from its pre pandemic price.
In other words, now that it is operating, investors trust our government even less than before.
Foreign investors have been dumping our bonds for over a decade. Though many fund managers are buying, the supply of bonds outstrips demand. Real yields are above 2.4% through the entire curve.
If you have savings, like a deferred-tax retirement account, expect it to get taxed back. This kind of payment is unsustainable even with a balanced budget.
The response in equities today is interesting. It suggests that, unless you work for Big Tech or at a hospital, you should quit and go home. You'll be unemployed or under-employed anyway. Best to land a good government job -- like bean counting at the BLS. Or better, run for Congress. Gravy train. You can fail at your job and be set for life. Just be sure to run as a Democrat.
Yields rise over 10 basis points on all 5+ year bonds.
TLT is now worth half of its value relative to the height of the pandemic, even a 30% discount from its pre pandemic price.
In other words, now that it is operating, investors trust our government even less than before.
Foreign investors have been dumping our bonds for over a decade. Though many fund managers are buying, the supply of bonds outstrips demand. Real yields are above 2.4% through the entire curve.
If you have savings, like a deferred-tax retirement account, expect it to get taxed back. This kind of payment is unsustainable even with a balanced budget.
The response in equities today is interesting. It suggests that, unless you work for Big Tech or at a hospital, you should quit and go home. You'll be unemployed or under-employed anyway. Best to land a good government job -- like bean counting at the BLS. Or better, run for Congress. Gravy train. You can fail at your job and be set for life. Just be sure to run as a Democrat.
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