By Skyler Greene: Seeking Alpha contributor Eric Parnell recently wrote an article in which he stated that given the Fed 's extension of Operation Twist, maintaining exposure to long-term Treasuries is a good idea. A quick excerpt: Thus, it appears as if the U.S. Federal Reserve through Operation Twist has finally identified a way to try and stimulate the economy, while also lowering yields and borrowing costs as a result. For these reasons, maintaining exposures to long-term U.S. Treasuries is likely to be beneficial moving forward. While I have great respect for Eric Parnell and his generally solid macroeconomic analysis, I'm going to have to disagree with him on this one. Bernanke's policies are not bond-friendly. Long-term Treasuries are a risky play right now, and there are several factors to keep in mind.
1: Yields Have No (Significant) Room To Drop
2: Operation Twist Not Responsible For Yield Drop (Europe Is)
In the article, ... Continue to read.
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