Bubble in Bond Market Bubble Talk Continues

Best of the Bond Market for April 23rd, 2012

Barron’s Big Money Poll  Our Take: The bubble in bond market bubble talk continued over the weekend with 81% of respondents to Barron’s Big Money Poll calling themselves Bearish on Treasuries.  The Big Money Poll is a survey of 125 money managers which is published twice a year.  Only 2% of those surveyed said they were bullish in yet another example of how many bond market bears there are now on one side of the boat.  “The Big Money managers expect investors to shift gradually out of bonds, with 10-year-Treasury yields backing up to 2.5% to 3% in six months from last week’s 1.970%.

Poll results when asked about bonds of all types:


WSJ How to Beat Government Bond Returns with a Guaranteed 7%Our Take:  We love legal and straightforward “Tricks” that allow us to juice as much return as possible out of investment here at LearnBonds especially in this low yield environment.  At first glance it seems like the WSJ has found a neat one ” For married couples, if the higher-earning spouse delays payments from age 62 to 70, but at age 66 begins collecting spousal benefits from the lower-earner’s plan (as Social Security allows), the return is like owning a 7% bond.”  Read the article for more.

Barrons Income Investing Blog: Citi Sees Bulls Aplenty in Munis Our Take: The Big Money Poll may have missed the Citigroup team who are bullish on municipal bonds, particularly those with 5 to 7 year maturities.  They cite their opinion that the net supply of municipal bonds should continue to fall as well as investors with either too much cash on the sidelines that will need to be put to work and/or with bonds that are going to be called in the near future.

Others Links: 

ETF Trends: Good Overview of the HYG ETF

InvestmentNews: In an apparent first, a public pension plan files for bankruptcy

WSJ: Outlook for Social Security, Medicare Continues to Deteriorate

MuniLand Blog: Denver’s high interest payments are its own fault

60 Minutes: The Case Against Lehman Brothers

5 Year TIPS vs. Gold

Bloomberg: MF Global Bondholders Feel Duped with Good Reason

Bill Gross Tweets:”Financial markets floating on an ocean of credit. Central banks must continue to write checks or the ship will sink”

The Urbanophile: What do Infrastructure Banks do for us Anyway?  

Bloomberg: US Bond Sales Rise as High Grade Yields Drop to Record

Rising Rates?  Why Muni Bonds may Weather the Storm

Marketwatch: Now’s the time for a bond ladder

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