Replying to Avatar Bourbonic Plague

Yellen will get to dump $1.5T worth of bonds on the market over the next 9 months. I wonder what that will do to bond yields. I also wonder what mix of terms she’ll be trying to sell.

Maybe Yellen will step down and let the next commie - Lael Brainard - take over now.
Avatar
paulo 2y ago

Yields will likely go up.

Mostly long duration, probably .

my 2 sats 👍

Reply to this note

Please Login to reply.

Discussion

Avatar
Bourbonic Plague 2y ago

I think they’ll be forced to sell more longer duration than they want, but they will resist that as much as they can. That’s my bet anyway.

Pensions and Insurance would love to get their hands on some 10y with reasonable yields, I’m sure.

Avatar
paulo 2y ago

Don’t you think that it would make sense to lock lower yields with long duration notes/bonds, instead of higher yields with short duration bills?

Avatar
Bourbonic Plague 2y ago

I don’t think Yellen and the Biden crew have any interest in doing the most sensible thing. I think they want maximum power and leverage.

Giving fixed income investors lots of long duration high yield US bonds would make those investors much more risk averse. The ESG wizards like BlackRock need those fixed income pools of money desperate for yield to fund/power their Great Reset fantasies.