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/biz/ - Business & Finance

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File: 1.08 MB, 1280x717, 10yearyield.png [View same] [iqdb] [saucenao] [google]
15175665 No.15175665 [Reply] [Original]

What kind of idiot buys a 10yr bond @ 1.7% interest?

>> No.15175687

>minerd
>stealthly infects your pc and mines monero
Heh nothin personnel

>> No.15175690

boomers

>> No.15175702

People with billions

>> No.15175720

>>15175665
people who think bonds might go negative

>> No.15175727

>>15175702
Retards with billions*

>> No.15175730
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15175730

>>15175665
Why do these shit bonds offer less interest than my fucking saving's account? LMAO

>> No.15175738

>>15175665
when people aren't sure if equities can continue their run up and a recession is on the horizon. getting 1.7% is better than losing money.

>> No.15175763

>>15175665
nobody is buying. that's why the price is low

>> No.15175765
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15175765

I don’t know what kind of special retards are buying negative yielding debt over gold and silver.

Can someone fucking explain to me how a 10 year note at 1% interest isn’t somehow better in any way than gold?

>> No.15175771

>>15175763
Based retard

>> No.15175774

>>15175665
Just wait until he we hit negative interest rates.

>> No.15175800

>>15175765
In the event several large asteroids made of precious metals rain down on earth and saturate the market

>> No.15175809

Probably the same kind of retard who buys LINK above $1

>> No.15175814

>>15175730
What bank?

>> No.15175853
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15175853

>>15175730
>high yield
Audible kek.

>> No.15175880

>>15175853
>high-yield
>still doesn't beat inflation
what did they mean by this?

>> No.15175980

imagine buying the german 10y bund haha WE LIVE IN A SOCIETY

>> No.15176005
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15176005

>>15175814
Vio.
>>15175880
>still doesn't beat inflation
Except it does beat inflation.

>> No.15176030

>>15175665
the FED

>> No.15176036

>>15175800
Just bought shit bonds.

>> No.15176047

>>15176005
You like it? 2.52 percent is pretty high. Highest I've seen so far.

>> No.15176089
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15176089

>>15176005
>using the CPI rate to calculate inflation

>> No.15176101

>>15176047
Yeah. Free ACH push and pulls and good customer service. Online only bank though.
>>15176089
>Your factual numbers proved me wrong so I'll call you an NPC!

>> No.15176125

>>15175665
Central banks, which is to say you anon if you’re a good goy and pay your taxes

>> No.15176134

>>15175730
Less liquid, higher default risk

>> No.15176163

>>15176134
>more liquid than cash

>> No.15176165

When you're rich you use bonds to generate tax free income.

>> No.15176166

>>15176134
how the fuck is a savings account less liquid

>> No.15176226

>>15175665
Buy deflationary assets like BOMB and SHOCK. Everyone is learning a lot about stock to flow, supply vs demand, and inflation vs deflation with the way Central banks give away $. The US has done a great job of keeping spending down compared to other countries, minus the military. They use all their money for guns, it has it's pros and cons. Less food for the poor but more countries will play ball with US corps. $ is usually strong vs other currencies despite the most massive military budgets

>> No.15176228

>>15176134
>Less liquid
Literally what
>higher default risk
What is FDIC insurance for up to 250,000k?

>> No.15176231

>>15176125
This, you know the fed and ecb are going to buy bonds for QE4 so you front run them and buy now. Yields are negative in europe, no reason it cant happen in the US.

>> No.15176271

People with a lot of money. It's stable and that 1-2% is a lot if it's a few million...

>> No.15176279

Imagine the idiot fucking millennial who didn't go all in digital gold before it hit 6 figures

>> No.15176293

>>15176279
BTFO in a single vid
https://youtu.be/clbHyIAc8U0 [Open]

>> No.15176296

Imagine being so starved for attention that you namefag on an anonymous Laotian fly fishing forum.

>> No.15176308

>>15176271
Stable in their decline. Only the non taxable bonds are worth losing so much money.

>> No.15176329

>>15176279
Sometimes people who never invested in shit tell me Stocks and bonds are smarter than BTC. I always tell them the difference in my crypto and traditional portfolios. one has 40X after 3 years and another gonna up 20% in a year and a half. My 40X would have been better if I stopped DCA on the way down and just saved

>> No.15176375

Can someone explain to me unironically why anyone would buy negative yield bonds in Europe? I get why it has happened, but I don't get why anyone would buy them.

>> No.15176407

>>15176375
Banks are obliged for regulatory purposes to hold “tier 1” assets like government bonds. They pass along the loss to retail consumers/account holders with abysmal (eventually negative) deposit rates and high fees.

TLDR: jews

>> No.15176437

>>15176407
So basically the negative yield bonds are a meme, because only the banks are buying that shit and then taking it out our savings.

Hard to tell who is jewing who these days.

>> No.15176449

>>15176166
Read the fine print. High yield savings accounts can freeze your funds up to 6 months during a recession and in some countries have been looted like Cyprus recently.

Treasuries are the most liquid instruments on the planet. There's a good reason every fund & corporation in the country is in T-bills. For example, Berkshire exclusively buys T-bills with <6 mo maturities. He can pick up a decent yield, and move on a deal in an instant. It takes multiple business days to move cash out of a savings account for example.

>> No.15176482
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15176482

>>15176437
It really is a clown world: banks are forced to buy money losing assets then ultimately get bailed out by the governments (actually present and future taxpayers) that forced them to buy the money losing assets in the first place. Even better, most western countries have bail in provisions so your deposit accounts can be converted into shares of the banks the governments killed/saved. You can’t make this shit up.

>> No.15176489

>>15176449
Just want to mention, most of the "High yield savings accounts" you chumps invest in, literally go out and buy short duration securities like treasuries and pocket the spread.

It's almost like paying a management fee. For example, people were raving when Ally was paying 2.1%, but 3 mo treasuries were at 2.6%. The Jews are bleeding you dry on this scam.

I remember in the last recession when commercial paper markets froze and without intervention, high yield accounts would get into a lot of trouble.

>> No.15176521

>>15176449
Wow, if that isn't an argument for BTC as storage of value, I don't know what is

>> No.15176528

>>15175702
No. Its governments/countries that have no choice, not individuals

>> No.15176544
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15176544

>>15176482
Wow... that's fucking depressing

>> No.15176558

>>15176521
It’s the only truly compelling argument for btc in my mind, but when prices can whipsaw from 20k to 4k to 10k over the course of two years it hardly seems sensible to hold any significant percentage of one’s net worth in it.

>> No.15176565

>>15176521
Imbecile.

>> No.15176580

>>15176558
I hear ya... I think we're probably 5 or 10 years off from stable prices. In the meantime long term hodl'ers who are already up and traders are going to be the only ones benefiting

>> No.15176590

>>15176565
Whatever gramps

>> No.15176603

>>15176544
Think of it this way.

You having a lot of money is great!

What about a bank?
Having a lot of money sucks. You need security, safety, comply with regulations. Costs them money because they have so much money. Easy to just buy guaranteed bonds that make money then to spend it on storage. Besides they want to make money with loans.

>> No.15176611

>>15176558
Certainly not anything you need to use in the next few years, I'd say 4 years with BTC. Some of us don't mind high risk because we're young and broke

>> No.15176618

>>15176603
Hence the shilling of all-time low mortgages today in the (((main stream media)))

>> No.15176732

>>15175814
Ally

>> No.15177024
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15177024

Be your own bank, Buy a shit ton of SHOCK at pennies on DDEX. Sell dividends once SHOCK hits $25 in December.

>> No.15177256

>>15175687
>hin p
maximu keked

>> No.15177857

>>15177024
>6% transaction free
Wow freedom from government sure is great! Fuck taxation!!!

>> No.15178017

>>15176308
If the yields keep going down, that means bond prices go up you numbnut! The investors make more money than yields would imply.

>> No.15178079

>>15175809
>Probably the same kind of retard who buys LINK

>> No.15178091
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15178091

FUCKING KIKES TRYING TO MAKE THE GOD EMPOROR LOOK BAD

>> No.15178165

>>15176544
Think of all the people that have no idea what is going on, the globe will be pretty fucked in a year or so's time, faintest whiff of a big bank collapsing and get your money out as quick as possible.

>> No.15178206
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15178206

>>15175665
People who think they can sell the bond to an even bigger retard when yields hit 1.0%

Greater fool theory.

>> No.15178216

>>15175665
I unironically had access to the investment accounts of the owner of a massive, national firm by accident at one point in time.

What did he have in his portfolio?

Thousands of Bonds. Exclusively Bonds.

>> No.15178242

>>15175665
Pension funds

>> No.15178265

>>15175665
people are so afraid of the upcoming recession they would rather get a shitty yield and have their money insured than risk it elsewhere

>> No.15178288

>>15178265
This, current environment is incredibly risky and people are looking how to preserve wealth rather than increase it.

>> No.15178371

>>15178265
>>15178288
But what about hyperinflation?

>> No.15178393

>>15178371
keep a suicide stack of gold and bitcoin, just in case

>> No.15178404

>>15175702
Personal point of privilege, comrade

Not all entities with billions are people some are autonomous collectives. Thank you

>> No.15178428

Ffs retards quickly scrolled through all the posts. Not 1 of you said CBs! That's what they are buying with the QE funds!
This is a (((Finance))) board, ffs. Learn something instead of spouting BS out of your ass like complete fuckin NPCs

>> No.15178470

>>15178371
hyperinflation is a schizo meme. recession means deflation

>> No.15178512

>>15178470
Not when the government tries to print its way out. With a gold standard I would agree

>> No.15178532

>>15178512
Do you understand the mechanics of fractional reserve banking? Not a pointed question just curious

>> No.15178584

>>15178512
>MUH print money
>MUH gold standard
Opinion discarded

>> No.15178623

>>15176489
>You chumps
Tell me honestly. Do you or anyone else go and buy short term t-bills every opportunity for a 0.3% yield increase?

>> No.15179037

>>15175763
>>15176166
>>15176228
Please stop posting on the business and finance board you retards, when you do not know the first thing about finance

>> No.15179068
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15179068

LMAO hold my bier und schnitzel

>> No.15179081

Anyone with a portfolio of assets, will keep some cash, say 20% cash. It doesn't matter. There is going to be some cash any entity with a well rounded portfolio is going to have. That cash is there as a hedge, not for yield, so the yield doesn't matter much. Now if you have a lot of cash you obviously can't hold it in physical cash, because storage and security would be costly. You can hold it in banks, but banks can fail, especially in a time where you'd need that cash. US bonds will be pretty much be guaranteed to be paid outside of the complete extinction of the human race, so its a natural investment for cash holdings dispit the yield being low.

>> No.15179118

>>15175665
Depends, what's the price of the bond per 100$? It might have a 1.7% yearly interest but could be much higher if held to maturity.

>> No.15179426

>>15175665
It's mostly international countries because it's a way more liquid market than gold.
Then it's a lot of government agencies that buy up government debt. (yes look into it, the government indirectly owns it's own debt)
Then you have the FED off course
Then you have fucking banks that buy it so that the yield stays low so that the government can issue more debt so that more money comes in the system so that the banks can do more business.
Then there are boomer cucks who don't know what they are doing.

>> No.15179445

>>15179068
Wow hadnt checked it in a while.
Germans are out japaning japan.

>> No.15179451

>>15175738
how bou dey in invest in bitcoin and get +10000%?

>> No.15179576

>>15176521
bitcoin has next to zero liquidity lol
Trying to sell $100M worth in a day would collapse the price.

>> No.15179594

>>15175730
this bank will collapse or lower that a lot soon

>> No.15179609

>>15175765
pension funds with mandates that only let them buy certain things (written in the era where negative rates were considered impossible) that's what you get when people are making decisions for other people with other peoples' money. it's a crime against anyone living in those countries to be honest. there's no logical reason it's just the law. laws can be changed but... we're making so much money

>> No.15180270

>>15176732
Ally is only 2%

>> No.15181214

0 financial knowledge as usual on this board. 10y bonds have higher duration —> bond price is more sensitive to interest rate changes. If you expect the interest rates to go even lower, you just bought yourself a leveraged bet on it.

>t. quant. All in in BSV

>> No.15181237

>>15180270
>>15175814
I already replied and told you what bank.
>>15176005

>> No.15182186
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15182186

>>15179445
It's the Jappening

>> No.15182370

>>15175665
An idiot with trillions in free money thanks to his (((friends))).

>> No.15182383

>>15175763
kek

>> No.15182469

>>15175702
>>15175727
Most likely answer. FDIC insurance doesn't guarantee that much.

>> No.15182475
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15182475

>>15176005
>average inflation rate: 1.8%

>> No.15182511

>imagine being so rich that you can invest in bonds

>> No.15182518

>>15175763
kekin

>> No.15182650

What would happen if bonds were unable to be paid out? Has this ever happened?

>> No.15182867

>>15182650
https://mises.org/library/short-history-us-credit-defaults

>> No.15183111

>>15182867
>In this exigency Roosevelt decided to default on the whole of the domestically-held debt by refusing to redeem in gold to Americans and devaluing the dollar by 40 percent against foreign exchange. By taking these steps the Treasury was able to make a partial payment and maintain foreign exchange with the critical trade partners of the United States.

So nothing happens. When will americucks learn lmao

>> No.15183144

>>15175665
>idiot
China
/thread

>> No.15183552

>>15175665
someone who knows how bonds work

>> No.15184394

>>15175665
Extremely rich people, and you are obviously not ones of them

>> No.15184452

>>15175730
Bank deposits are insured up to 250k.

A government bond is guaranteed by the state. Just different levels of risk.

>> No.15184642

>>15176101
>factual
you are actually retarded

>> No.15184662

>>15175665
People looking for a safe place to stick their money.

>> No.15185326

>>15184452
Backed by USD you brainlet....

>> No.15185350

>>15175665
boomers

>> No.15185555

>>15175665
Euro bonds are negative. If that happens here they made the right call.

>> No.15185696

>>15185326
You're conflating the denomination of a bond with the designated third party backer of a guaranteed bond.

T-bills are written in USD, payments obligations are owned by the treasury department, since it is a guaraneed bond the state acts as the guaranteeing third party in the event the treasury can not meet its obligations.