How long can the rally continue . We begin with the big issue, markets betting low rates are here to stay in 2020. It is hard to see the yield breakout from here. Rates will probably drift lower. Bond yields moving sideways. We cant generate any inflation right now. It should eventually be a good year for bonds. Still attractive but certainly not breaking out. 1. 20 by the end of the year. If we get to 1. 2 on the 10 year, we are looking at a global recession. We are going to test 1 . A lot of things have to be going incredibly wrong to get to 1 . I think we are going lower. The u. S. Economy could go into recession. Unless the market begins to price in additional cuts, the 10 year, at most, will drop down to the 1. 60 range. The fed will probably not cut again. If there is any weakness in the data, you will see an outsized rally in bonds. The path to least resistance has been lower, and i see no reason to think that will change in 2020. Taylor can we break out of the range set in 2019
Corporate bonds on track for the best returns in a decade, but how long can the rally continue . We begin with the big issue, markets betting low rates are here to stay in 2020. It is hard to really see the yield breakout from here. Bond yields moving sideways. Trapped in this range. We cant generate any efficient right now. That should eventually be a good year for bonds. Still attractive, but certainly not breaking out. 1. 20 by the end of the year. To get to 1. 2 on the 10 year, we are looking at a global recession. We are going to test 1 . A lot of things would have to go incredibly wrong to get to 1 . And if im wrong, i think were going lower. In the u. S. Economy could potentially go into recession. Unless the market begins to price in additional cuts, the 10 year at most, will drop down to the 1. 60 range. The fed will probably not cut again. If there is any weakness in the data, you will see an outsized rally in bonds. The path to least resistance has been for decades, lower, a
The best returns in a decade, but how long can the rally continue . We begin with the big issue, markets betting low rates are here to stay in 2020. It is hard to see the yield breakout from here. Bond yields moving sideways. We cant generate any inflation right now. Still attractive but certainly not breaking out. 1. 20 by the end of the year. If we get to 1. 2 on the 10 year, we are looking at a global recession. We are going to test 1 . A lot of things have to be going incredibly wrong to get to 1 . Unless the market begins to price in additional cuts, the 10 year, at most, will drop down to the 1. 60 range. The fed will probably not cut again. If there is any weakness in the data, you will see an outsized rally in bonds. The path to least resistance has been lower, and i see no reason to see that change in 2020. Taylor can we break out of the range set in 2019 . Joining us from new york are collin martin, peter tchir of academy securities, and in pasadena, john bellows. I want to g
Corporate bonds on track for the best returns in a decade, but how long can the rally continue . We begin with the big issue, markets betting low rates are here to stay in 2020. It is hard to see the yield breakout from here. Bond yields moving sideways. We cant generate any inflation right now. Still attractive but certainly not breaking out. 1. 20 by the end of the year. If we get to 1. 2 on the 10 year, we are looking at a global recession. We are going to test 1 . A lot of things have to be go incredibly wrong to get to 1 . Unless the market begins to price in additional cuts, the 10 year, at most, will drop down to the 1. 60 range. The fed will probably not cut again. If there is any weakness in the data, you will see an outsized rally in bonds. The path to least resistance has been lower, and i see no reason to think that will change in 2020. Taylor can we break out of the range set in 2019 . Joining us from new york are collin martin, peter tchir of academy securities, and in pa
Corporate bonds on track for the best returns in a decade, but surprising rebound. How long can the rally continue . Taylor the dallas fed president Robert Kaplan weighed in on the credit market, telling bloomberg we begin with the big issue, tv those tighter spreads might markets betting low rates are be cause for concern. Here to stay in 2020. B and bb credit spreads are it is hard to see the yield so tight. Bbb spreads are very tight. Break out from here. If i see the market is bond yields moving sideways. Distinguishing between lower quality credits and better trapped in this range. We cant generate any inflation right now. Credits, i think that is an it should eventually be a encouraging sign. My bigger worry is you have got good year for bronz bonds. Increasing pe, historically low still attractive but cap rates, tight credit spreads, certainly not breaking out. 1. 20 by the end of the year. And im just keeping a close eye if we get to 1. 2 on the 10 year, we are looking at a glo