Yes you can lose a lot of money with bonds...
The Pimco 25+ Year Zero Coupon US Treasury ETF is off more than 60% from its high
If US Treasuries would the stock market, the current drawdown for long for the stock market in history
Source: Michael Gayed
Treasury notes, bonds, and mortgage-back securities account for over 80% of the Federal Reserve's balance sheet
Last week, the Fed's balance sheet plunged by almost $75BN last week, its biggest weekly drop since July 2020. The Fed's balance sheet is now over 10% below its April 2022 peak. But this is WITHOUT taking into account the current drop in value of the bonds held on the balance sheet. Indeed, if they were to be re-evaluated using a mark-to-market methodology, the Fed's assets could be reduced by another $1 trillion. To provide some context, he recent decline in market value would likely exceed the entirety of their QT policy thus far, which accounted for $939B. This would essentially revert their balance sheet size back to 2020 levels. Source: Bloomberg, Tavi Costa
Treasury Yields now surpass Stock Dividend Yields by the widest margin since the Global Financial Crisis
Source: Bloomberg, Bar chart
An ugly canadian CPI, surging crude oil prices and cautious positioning ahead of tomorrow's FOMC decision have pushed #us treasuries yields to their highest since 2007...
Bonds are now at their cheapest to stocks since Oct 2007... Source: Bloomberg, www.zerohedge.com
China's holdings of US Treasuries just reached its lowest level in 14 years
Now down almost $481B from peak levels. Source: Crescat Capital, Bloomberg
Nice one by Steno research
While there are some fundamental reasons for US Treasury yields to keep rising (check out the Atlanta Fed Nowcast model poiting towards nearly 6% annualized real GDP growth in 3Q), what is currently going in China probably has some impact as well Source: Stenio research
This is the largest short position ever in the US Treasuries 2 year note
Source: ISI chart
