Joe Weisenthal has been causing a stir on Twitter discussing "yield bugs": people who have an ideological belief that bond yields out to be positive. This Bloomberg opinion piece discusses this, as well as some other comments on negative yields coming to the United States. I have not followed that debate too closely, as I initially assumed that there was not a whole lot of people who believed that bond yields ought to be positive. This is because bond yields are essentially determined by central bank expectations, and there is not a lot stopping central banks from pushing short rates to negative values....Bond Economics
Yield Bugs
Brian Romanchuk
1 comment:
“If the New Keynesians at the Fed want to march the Fed Funds rate negative,”
They don’t use the FFR any more they’ve used IOR for last 10 years.... Powell just said IOR is the rate policy tool for last 10 years Fed never going back to FFR....MMT 10 years behind the times... maybe spend less time on partisan politics and more time analyzing actual banking regulatory operations?
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“ Treasury yields will follow suit.” : figurative language... anthropomorphism ...
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