[quote=SD Realtor]What is unprecendented right now is the yield on the 10 year treasury. People must be really thinking that this is gonna be a whopper of a recession to push the bond market like this.
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Sd R, could you elaborate alittle for those of us even less uninformed than you about the bond market. Maybe just some links where you get your information. I am wondering what you mean by “pushing”. I read that there was a time not too long ago where people were actually accepting negative returns for a brief period. As in “here Uncle Sam, Ill pay you to save guard my money.” Why not just stick it in a bank CD and get 2%? The same government is backing both, and I would sure rather get my 2% than pay the Gov a %.
And why would anyone want a RE bond paying out of a 4.25% interest rate? Eventually in the next 30 years we will return to inflation times, and when it does itll suck to be in a bond that barely returns capital after expenses are paid and losses are accounted for. Sounds just as smart as buying a treasury for negative yield.