2 days and 5 hours to donald’s ascension
last 10-yr bond trade offered 4.623%
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Day 1 is likely to see exec orders around the issue of the border and illegal migrants
Week 1 is likely going to be a massive stack of executive orders donald made during his campaign
The Qtn is … will donald sign them all. It is his choosing and prerogative after all.
The main point in the case of salaried people is that treasuries provide another source of income for them.
Many countries in the world have the one job allowed only restrictions, and restrictions on what their employees can do after work mainly that they cannot take up a second job or freelance a job on the side or have a legal entity in their name as such matters are seen as the employee having a conflict of interest, having a legal entity conducting business in the same or even different industry serves as grounds for the employee facing immediate termination, no questions asked. Many countries also do not have effective welfare programs…
So what many salaried people in those countries do is to look for other streams of income such as fixed income securities, buying rental properties etc.
Their investing in fixed income government securities is the harmless way.
Treasury prices can also plateau for many years but then there is frequent cash turnover and reinvestment which when done long enough doubles their net worth.
Some people think rental property is the way but it is not, oh! the rental property will keep on growing in value. However, that is relevant if they plan to rent then sell the property in 10 years and not hold it for 50 years because at that time then who will be willing to pay market value with the hope saying oh! rental rates and property prices will keep on growing in the future… rental and property prices tend to plateau and stay flat for many years at a stretch. Now where is the appreciation in that?. The whole building gets older over time, and needs maintenance which costs $$$$$, The costs of building materials and a team of workers are justified only if the property is purchased for the owner to live in the property with his/her family.
Treasury yields nowadays are higher than property yields and will remain so in future times to come.
if I told you the 10 year bond yield would fall from 4.80% to briefly under 4.60% and the dollar would close the week on a firm note, what would you say?
A look at the day ahead in U.S. and global markets from Mike Dolan
Salvos from a Federal Reserve governor and the incoming Treasury Secretary helped nail down this week’s inflation-inspired retreat in worrisome U.S. Treasury yields before Donald Trump’s inauguration as president on Monday.
The reversal of the year’s rise in U.S. yields and the dollar coupled with news of an upbeat end to last year for China’s economy nudged world stocks up on Friday