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Is The Treasury Market Wrong Because Of Hedgers? — Brian Romanchuk

Summary:
I have some seen some commentary about hedging demand and Treasury yields. One typical interpretation is that hedging demand is pushing Treasury yields "too low," and so the signal from the yield curve is distorted. Furthermore, one could argue that this represents some form of "bond bubble. Since I do not give unsolicited investment advice to random strangers over the internet, I cannot give an answer to those questions. However, I can safely discuss the background behind these arguments, which have some merit (but are perhaps dangerous).... Bond Economics Is The Treasury Market Wrong Because Of Hedgers? Brian Romanchuk

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I have some seen some commentary about hedging demand and Treasury yields. One typical interpretation is that hedging demand is pushing Treasury yields "too low," and so the signal from the yield curve is distorted. Furthermore, one could argue that this represents some form of "bond bubble.
Since I do not give unsolicited investment advice to random strangers over the internet, I cannot give an answer to those questions. However, I can safely discuss the background behind these arguments, which have some merit (but are perhaps dangerous)....
Bond Economics
Is The Treasury Market Wrong Because Of Hedgers?
Brian Romanchuk
Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

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