The Bond Dream Room

Discussion of the Bond portion of the Permanent Portfolio

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dualstow
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Re: The Bond Dream Room

Postby dualstow » Mon Apr 03, 2017 11:48 am

Nice pop in bonds today, even though it's still early.
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Re: The Bond Dream Room

Postby barrett » Mon Apr 03, 2017 3:28 pm

dualstow wrote:Nice pop in bonds today, even though it's still early.


Yeah, it was a good day to own LTTs. Does anyone want to take a crack at explaining to me why long bonds and gold have been so closely corellated in recent months? I haven't looked too closely at the little sqigglies, but it seems to me that those two assets have moved largely in unison the past six to eight months.
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Re: The Bond Dream Room

Postby ochotona » Mon Apr 03, 2017 3:56 pm

I have heard it described as a rotation into risk-off assets.
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Re: The Bond Dream Room

Postby dualstow » Fri Apr 07, 2017 8:06 am

New Fidelity Treasury offerings announcement:

UST Maturing 07/13/2017 Auction Close Date: 04/10/2017

UST Maturing 10/12/2017 Auction Close Date: 04/10/2017

UST Maturing 04/15/2020 Auction Close Date: 04/10/2017

UST Maturing 02/15/2027 Auction Close Date: 04/11/2017

UST Maturing 02/15/2047 Auction Close Date: 04/12/2017
Etymology of "dismantle"- to pull down castle walls, but to lit. pull down a cloak.
"'Your life is tedious and brief.' All sundial mottos are sad like that."
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dualstow
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Re: The Bond Dream Room

Postby dualstow » Sun Apr 30, 2017 8:48 am

Good post at b'heads by Robert T: The Diversifying Power of Longer Term US Treasuries

https://www.bogleheads.org/forum/viewto ... =10&t=2409
Etymology of "dismantle"- to pull down castle walls, but to lit. pull down a cloak.
"'Your life is tedious and brief.' All sundial mottos are sad like that."
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dualstow
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Re: The Bond Dream Room

Postby dualstow » Fri May 05, 2017 2:38 pm

I see 30-year bonds for auction via Vanguard today. Get'em while they're hot.
Etymology of "dismantle"- to pull down castle walls, but to lit. pull down a cloak.
"'Your life is tedious and brief.' All sundial mottos are sad like that."
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Re: The Bond Dream Room

Postby Jack Jones » Fri May 05, 2017 2:41 pm

I appreciate these bond auction reminders. I've missed a few auctions in the past.
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Re: The Bond Dream Room

Postby dualstow » Fri May 05, 2017 2:44 pm

Jack Jones wrote:I appreciate these bond auction reminders. I've missed a few auctions in the past.

I meant to post it this morning -- sorry about that. Too many contractors calling, and calling about nothing, really.

Still have time, though.
Etymology of "dismantle"- to pull down castle walls, but to lit. pull down a cloak.
"'Your life is tedious and brief.' All sundial mottos are sad like that."
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Re: The Bond Dream Room

Postby barrett » Fri May 05, 2017 3:38 pm

dualstow wrote:I see 30-year bonds for auction via Vanguard today. Get'em while they're hot.


Can you explain why it's advantageous to buy bonds at auction as opposed to on the secondary market? The auctions are just something I never pay attention to. Thanks for your help.
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Re: The Bond Dream Room

Postby dualstow » Fri May 05, 2017 3:51 pm

I can't. I think the last time this conversation came up, it ended with someone saying, "Some people just like that new bond smell."
O0

EDIT: https://gyroscopicinvesting.com/forum/v ... bond+smell
Etymology of "dismantle"- to pull down castle walls, but to lit. pull down a cloak.
"'Your life is tedious and brief.' All sundial mottos are sad like that."
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Re: The Bond Dream Room

Postby dualstow » Fri May 05, 2017 3:58 pm

Slightly pro-auction comments in this TIPS thread at b'heads: https://www.bogleheads.org/forum/viewtopic.php?t=165995
Etymology of "dismantle"- to pull down castle walls, but to lit. pull down a cloak.
"'Your life is tedious and brief.' All sundial mottos are sad like that."
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dualstow
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Re: The Bond Dream Room

Postby dualstow » Tue May 09, 2017 3:01 pm

barrett wrote:Can you explain why it's advantageous to buy bonds at auction as opposed to on the secondary market? The auctions are just something I never pay attention to. Thanks for your help.


I think i have a better answer for you, although it still doesn't amount to advantageous. In keeping with the theme of taking what the market gives you, i.e. in a similar vein to buying a broad stock market index fund, I think I prefer just buying at the next auction the next time I have the cash and the need. I don't worry about the time between auctions, and it's not like I buy that often.

Rather than try to figure out what kind of yield I need and what price to pay, rather than try to compete with other buyers and sellers who are almost certainly smarter than me, I just buy a note when I need a note and a 30-year-bond when I need a bond.

(Granted, the market movements are pricing those secondary market notes and bonds, too, so you're still buying what the market gives you when you buy used. But, you're selecting from different issues).

There is one tiny advantage with buying 30-year-bonds at auction. They'll last a bit longer than anything you can find used. By definition, there's nothing newer.
Etymology of "dismantle"- to pull down castle walls, but to lit. pull down a cloak.
"'Your life is tedious and brief.' All sundial mottos are sad like that."

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