August 3, 2016

GIVEN HOW MUCH MORE THE DOLLAR WILL GET YOU IN 30 YEARS...:

Treasury 30-Year Yield Seen Near Zero in Nomura's Vicious Circle (William Finbarr Flynn , August 1, 2016, Bloomberg)

The yield on 30-year Treasuries could plunge to almost zero within two years as investors seeking higher income streams shift funds from Japanese government bonds into the U.S., according to the Asian nation's biggest brokerage.

"Japanese money" will move into the sovereign securities of other major economies as about 900 trillion yen ($8.9 trillion) of JGBs offer negative yields, Toshihiro Uomoto, Nomura Holdings Inc.'s chief credit strategist in Tokyo, wrote in a report on Monday. The decline in global yields will weigh on consumer sentiment, put pressure on banks' interest income, and may result in more stimulus from central banks, according to Uomoto, ranked as Japan's top credit analyst by Nikkei Veritas for three of the past four years.

...why would we also pay you interest?

Posted by at August 3, 2016 1:44 PM

  

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