US Treasuries May Take Hit: Time to Go Short on TLT?

The U.S. 10-year Treasury yield briefly rose to 4.5% today, and TLT may face greater risks in the near term. China holds over $700 billion in U.S. Treasuries, and in an extreme scenario, if it decides to retaliate against the U.S. by dumping bonds on the market, short-term yields could come under significant upward pressure. While the Fed could step in and print money to buy, the room for yields to fall may be limited before this risk is fully priced in. Are you still holding U.S. Treasuries? What’s your trading strategy?

avatarWendyOneP
04-07
With global equities tanking, capital preservation is key.US Treasuries remain the world’s most liquid and reliable safe haven.Yields may be low, but stability matters more in a downturn.Flight-to-quality flows are already pushing bond prices higher.They also provide dry powder for re-entry into risk assets later.In panic mode, Treasuries are the rational refuge.
RepostReply
avatarTyches Swan
04-07
If I had cash, I'd park it in treasuries at least till the news cycle is a little bit more optimistic. There's more downside risk in the short term.
RepostReply
avatarAN88
04-04
Nah will buy gold or other market
RepostReply