Are Long-Term Treasury Bonds Finally Worth Buying?

During their recent episode, Taylor, Carlisle, and Jeff Weniger discussed Are Long-Term Treasury Bonds Finally Worth Buying? Here’s an excerpt from the episode:

Now, again, this is where this requires forecasting where inflation goes from here. But if it can hang out at 3.4, then suddenly that’s not the worst prospect in the world. But to go back to France right now, this is see, we just did that.

We came back to close the loop to go. So France is going to run something like a 5.6 or 5.8 percent budget deficit to GDP ratio this year. And they’re going to they’re going to come up with a series of tax hikes and spending cut where they’re going to try to.

And let’s call that like 50 billion euros, which is a lot of money. And that’s only going to take the deficit to GDP ratio from, let’s say, like five, six, five, seven down to like five. And five is still a very bad deficit.

It’s not like it’s a good, oh, we balanced it. No, you just took a bad situation and made it not as bad. But still really bad.

So and we have it here in the US, right? It’s six, six percent budget deficit to GDP ratio. So we do have to take these things with a grain of salt.

But I was like, I was looking at the Barons this weekend. Dan Fuss, was it Dan Fuss? Somebody was saying it.

I wouldn’t buy, I wouldn’t. I wouldn’t buy something longer than 20 years. I’m so misquoting whoever said this.

I think it was Dan Fuss. I wouldn’t buy something with 20 years with your money or something like that. Oh, oh, is it that bad?

I’ll put it to you guys. Is it that bad?

[Tobias] Let me, let me, I think, I think, you know, the time to make those moves was when I was running negative. But then there was a suggestion that US was running negative, was going to go negative too. Like there was no clear, it wasn’t clear that that was all going to turn around.