Int rates
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Started by wglassfo - Aug. 15, 2019, 7:10 p.m.

MM

Not sure if this is trading or not

If not, then please move the post

Does anybody think we will go to negative int rates??

One reason for TR is anybody that trades bonds might chip in with thoughts

Our country follows your country lock step, only a bit later re: int rates

I have to think int will at least go lower, if only to allow the gov't to pay int on the debt, a bit longer

Germany and a lot of other countries pay negative int rates on bonds they sell, today

I know why negative int rate bonds sell, but I have to think that market is limited

The USA sells a lot of bonds, would the market buy those bonds at zero or less???

The USA has to do something to pay int on the debt, thus the logical solution is to pay less int on bonds that are sold

But, if enough bonds, world wide, are not sold, would we have a credit freeze, or default

Eventually I think we would have a depression, as this whole thing plays out to the final inning

Does my thinking make any sense???

Is the last inning a lot closer than most think???

What else could happen???

Comments
Re: Int rates
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By Richard - Aug. 15, 2019, 9:43 p.m.
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The bond market is very close to a major top. I timing with Bonds is not so good so I am not picking a date or price but the way I see it, there is no chance that the US bond market will go negative within the next 5 years. What happens after that is too far forward to see.

Re: Int rates
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By wglassfo - Aug. 16, 2019, 12:05 a.m.
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Hi nRichard

I agree negative int rates does seem a remote possibility, but I would not think it impossible

However, if you think bonds are near a top then you think int rates will go up, if bonds go down

Why do you think int rates will go up???

That seems to me the most unlikely thing that would happen