Comments on: Treasury yields not adding up http://blogs.reuters.com/commentaries/2009/08/26/treasury-yields-not-adding-up/ Now raising intellectual capital Sun, 08 Nov 2015 08:31:30 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: ARJTurgot http://blogs.reuters.com/commentaries/2009/08/26/treasury-yields-not-adding-up/comment-page-1/#comment-3050 Thu, 27 Aug 2009 15:43:18 +0000 http://blogs.reuters.com/commentaries/?p=3103#comment-3050 my explanation is that it’s behavioral finance at work. All the central banks and most of the bond traders are holding their breath and praying that the U.S. can get some form of recovery started.

Sharp rises in interest rates are not going to be nice to that huge Chinese bond portfolio, and arbitrage practices there can get you shot. No one in Switzerland is going to do anything at all to possibly make anyone in the U.S. Treasury Dept. look in their direction for the next 20 years or so.

But, seriously, I think that this is a calm before the storm; either enjoy or hedge like hell, maybe both.

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