Rate Cut Expectation -> Bond Crash?
$iShares 20+ Year Treasury Bond ETF (TLT.US)$ Can someone please tell me why TLT is still crashing hard? The jobs number is so bad they have to cut rates right?
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104701715 : There might be some people are shorting it.
Qinglan Chen : Add positions and then wait.
Arsoni5t OP 104701715 : So they are shorting it so hard that the jobs number isn't even enough to counteract it?
70195760 Arsoni5t OP : They short because they believe Trump win and a lot of his policies can cause the inflation due to offering too many gov bonds.
Arsoni5t OP 70195760 : I know why they're shorting it. I just don't know why they are able to go against a jobs number that is 90% lower than expected and still cause a 1% crash.
MaoLo : Yes, institutions are shorting.
70195760 Arsoni5t OP : I am hoping the Fed will win again. Never against the Fed should be always the principal.
104701715 Arsoni5t OP : people could be shorting it as this is really in a down trend, or whenever institution/money want to fry something up again they could be shorting it first before they enter.
股痴 : The new 20-year US Treasury bond has an interest rate of 4.59%... The TLT, which has dropped to $90, only has a 4% interest rate... Would it only be a reasonable price when it drops to $82?