Tim Price, a London-based wealth manager and editor of
Price Value International writes:
Jeremie Banet, a French fund management colleague of former Pimco executive Bill Gross, quit the bond business altogether to sell croques-monsieur [ grilled ham and cheese sandwiches] from a food truck.
Banet name may have decided to get out of the bond market for the best available crisis-proof job he could find. And be sure the crisis is coming. Price reports on the volatility that is already occurring:
Consider the sort of volatility that the 10-year US Treasury experienced on 15th October.
Having begun the day sporting a 2.2% yield, the 10-year note experienced an extraordinary surge in price that took its yield down briefly towards 1.85%.
Later in the same session the buying abated, and the bond closed with a yield of roughly 2.14%.
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Robert,
ReplyDeleteWhat would happen to bond rates if the tax code was rewritten to mandate that all 401k and IRA plans were required to hold a minimum of 10% of the account in government bonds?
Alan