147. Bond Markets with Nik Bhatia
The Bitcoin Standard Podcast
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Bond Investors - Why Did They Experience Such a Tough Year?
Bond investors looked at their holdings of treasuries yielding, let's call it 1%. And they looked at inflation, realized inflation heading towards 7%. That is a negative 6% real yield on their investment. So if you had a 10 year bond and you're staring down the barrel of the next 3 years of inflation being at about 7%, would you want to hold that bond at 1%? The answer is absolutely not. Money rushed into cash into the shortest possible exposure so as to not expose itself to rising interest rates which directly causes lower bond prices. We are headed into global recession, and that should cause a demand for the safety of government bonds. Government bonds are the best way
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