UStreasury
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Legendary investor Buffett, US Treasury Long VS Little Buffett Bill Ackman, US Treasury Short
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Credit rating agency Fitch recently downgraded the US sovereign credit rating. Since then, the US 10-year bond yield soared to 4.188%, rising to the level of the US stock market plunge in October last year. After the US debt ceiling negotiations, it was announced that it would increase debt by $ 1.89 trillion in the second half of this year, and while the market is expected to increase the issuance of government bonds in the future, Buffett and Bill Ackman are attracting attention by showing conflicting positions in government bond positions.
Buffett claims
There are things in the world that people don't have to worry about. The dollar is the world's key currency, and this is a fact that everyone knows. US Dollar King Wangjjang.
Ackman claim
Increased issuance of U.S. Treasury bonds to cover government spending. Pessimism that if long-term inflation in the US stays at 3% instead of 2%, the yield on 30-year US Treasury bonds will reach 5.5% from the current level of 4.19%.
Personally, I'd like to support Ackman's claim. Already, US Treasury yields are showing abnormal conditions beyond the trend that has been going on since the 80s. The reason why US bond yields have been able to slump over the long term is because US Treasury bonds have been a safe haven asset in times of low inflation, i.e. a recession. Still, I think the high inflation disproves that US Treasuries are really unpopular.
If inflation rises from 2% to 3% in the US, the attractiveness of government bonds, which have relatively low yields compared to higher inflation, will be less attractive. Then, demand for US bonds will decrease, and as bond prices fall, yields are more likely to remain higher than before. If demand for U.S. Treasury bonds declines, there will be less conversion of dollars to buy U.S. Treasury bonds in other countries, which could fundamentally increase the likelihood of a decline in the value of the dollar.
Here, as a coin investor, what to think about is 'Does the US tolerate rising inflation?' I think this is good news for Bitcoin. Since the inflation rate has increased from 2% to 3%, 33%, on the contrary, the dollar has lost its value. I think investors who have their eyes on the dollar will pay more attention to Bitcoin or gold.
#UStreasury #short #inflations
Credit rating agency Fitch recently downgraded the US sovereign credit rating. Since then, the US 10-year bond yield soared to 4.188%, rising to the level of the US stock market plunge in October last year. After the US debt ceiling negotiations, it was announced that it would increase debt by $ 1.89 trillion in the second half of this year, and while the market is expected to increase the issuance of government bonds in the future, Buffett and Bill Ackman are attracting attention by showing conflicting positions in government bond positions.
Buffett claims
There are things in the world that people don't have to worry about. The dollar is the world's key currency, and this is a fact that everyone knows. US Dollar King Wangjjang.
Ackman claim
Increased issuance of U.S. Treasury bonds to cover government spending. Pessimism that if long-term inflation in the US stays at 3% instead of 2%, the yield on 30-year US Treasury bonds will reach 5.5% from the current level of 4.19%.
Personally, I'd like to support Ackman's claim. Already, US Treasury yields are showing abnormal conditions beyond the trend that has been going on since the 80s. The reason why US bond yields have been able to slump over the long term is because US Treasury bonds have been a safe haven asset in times of low inflation, i.e. a recession. Still, I think the high inflation disproves that US Treasuries are really unpopular.
If inflation rises from 2% to 3% in the US, the attractiveness of government bonds, which have relatively low yields compared to higher inflation, will be less attractive. Then, demand for US bonds will decrease, and as bond prices fall, yields are more likely to remain higher than before. If demand for U.S. Treasury bonds declines, there will be less conversion of dollars to buy U.S. Treasury bonds in other countries, which could fundamentally increase the likelihood of a decline in the value of the dollar.
Here, as a coin investor, what to think about is 'Does the US tolerate rising inflation?' I think this is good news for Bitcoin. Since the inflation rate has increased from 2% to 3%, 33%, on the contrary, the dollar has lost its value. I think investors who have their eyes on the dollar will pay more attention to Bitcoin or gold.
#UStreasury #short #inflations
