U.S. bonds yields to fall to 2.8%

News of the poor management of the U.S. government’s income statement and balance sheet isn’t new.

https://www.bloomberg.com/news/articles/2024-02-29/pimco-sees-swelling-deficit-dragging-bonds-back-to-the-future?cmpid=BBD030124_MKT&utm_medium=email&utm_source=newsletter&utm_term=240301&utm_campaign=markets&sref=qLOW1ygh

Nor is the oft grouping of ‘money printing’ yet rates were below 1% not too long ago.

I say that the U.S. 2 year paper goes to 2.8% – 3.1% before it considers moving back higher,

And all the other capital market effects that would come with that…….

I expect U.S. rates to move to where they can do the most damage.

March 2, 2024

by Rob Zdravevski

rob@karriasset.com.au