The U.S. unemployment rate jumped in March to the highest level since 1983 and service industries shrank at a faster pace, indicating the economy remains trapped in what’s likely to be the longest recession since the 1930s.
We are not in normal times. The world has reached its carrying capacity of debt and cannot stomach huge Treasury issues:
Treasuries fell as the U.S. prepared to sell an estimated $59 billion in notes and inflation-indexed securities next week, part of a record amount of debt the government is likely to issue this year.
T-bonds are being re-priced as moderately risky assets, and when the full force of Helicopter Ben's dollar drops hit they will be re-priced as high risk assets.
Nota bene: Anthony J. Alfidi has no position in long-dated T-bonds, although come to think of it he does have some old Series EE Savings Bonds locked away. He'll probably cash those out next year.
