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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: Mike Johnston who wrote (70125)9/22/2006 6:19:15 PM
From: The Vet  Respond to of 110194
 
Not only will inflation eat up that miserable return that the bond holders are getting but if they are off-shore buyers they lose on the USD as well as it weakens.

Look at the USD index for the past 3 days.

quotes.ino.com

Anyone who bought US bonds with any currency other than the USD on Wednesday has already lost about 1% in 3 days on the currency move alone. The bonds may have gone up in USD but the dollar drop has eaten up all that gain and maybe even more.