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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?


To: mishedlo who wrote (22304)1/27/2005 7:29:49 PM
From: RealMuLan  Read Replies (1) | Respond to of 116555
 
>>Do yields at 4.19 percent for U.S. 10-year debt really compensate investors for the risks they face? <<

The yield seems fine as long as the investors do not hold them for 10 years<g>

>>Does 1.32% compensate Japan buyers for the risks they face?<<

Who are those stupid buyers<g>?



To: mishedlo who wrote (22304)1/27/2005 11:29:30 PM
From: Wyätt Gwyön  Read Replies (1) | Respond to of 116555
 
Does 1.32% compensate Japan buyers for the risks they face?

the idea is that it's a carry trade, since short money can be borrowed at an infinitessimally small rate, which they actually quote in "parts per million" because basis points are too large by several orders of magnitude.