Just thought I would throw in the Knick’s won-lost stats as the market went into a coma yesterday. As I write this, futures are actually down as Asia and now Europe sell off overnight. What? You mean markets are actually down? After all, Germany/France 10-yr yields hit all-time lows of 54 & 83 bps. Yes…that’s the 10 year. After all, the German 2 year yield is negative. Yup…buy a 2 year AND PAY THEM. Yup, you give them the toaster.
If you would have asked me a year ago where I thought yields would be, I would have been better off telling you the Knicks would win the championship this year. That’s why I do not predict a year out. In fact, I have no clue what I am eating for lunch today.
All I know is that the biggest bubble in history, the bond market, both here and many places abroad, continues to have distorted price and yield. I was always taught to believe lower yields were a good thing as cost of capital drops. Just not sure THESE rates have anything normal about them. Welcome to the GRM! (Government run markets!)