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ion_trapper • today at 4:32 AM • 2 replies • view on HN

The yield is bounded from below by the treasury yield, which is just a little lower - and with the treasury you have really big problems if they default! But realistically the US will inflate its currency rather than default, so the yield is really just reflecting expected future inflation. It’s not as great a deal as it seems. Bonds are probably the most fairly priced assets in the world.


Replies

neural_thing • today at 5:05 AM

I'm old enough to remember Argentina issue a 100 year bond with an 8% yield.

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maerF0x0 • today at 4:43 AM

If by fairly priced you mean so competitively priced that essentially all the real profit has been taken out.

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