Warren Buffett said “the U.S. Treasury bond bubble of late 2008 may be regarded as almost equally extraordinary” as the Internet bubble of the late 1990s.
Why would he make such a bold statement? A quick look at bonds over the past 40 or so years shows that the yield on 10-year U.S. Treasuries peaked in the mid-teens back in the early 1980s and has steadily fallen since then, to get us to the 3.9% yield they are currently experiencing. For comparison, 10-year UK gilts currently yield a very similar 3.8%.
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