Investing

Canadian yield curve inversion reaches its deepest since 2000

  • Last Updated:
  • Aug 7th, 2019 8:32 pm
[OP]
Sr. Member
Dec 25, 2015
530 posts
327 upvotes
Canada

Canadian yield curve inversion reaches its deepest since 2000

Wow. Looks like the market is pricing in several rate cuts by the BoC. Better convert to USD, Bitcoin, Brampton condos, Greek bonds or beyond meat before these cuts. Looks like CaD will weaken with these cuts (I’m kidding don’t buy those things). All global yield curves seriously look like they’re headed to zero. This is getting ridiculous.

https://www.bnnbloomberg.ca/canadian-yi ... -1.1297901
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3 replies
Newbie
Jul 8, 2018
45 posts
52 upvotes
my bonds are doing great
Zoomer Mobile 6 GB / Unlimited $40.50
Deal Addict
Oct 6, 2015
2463 posts
1372 upvotes
CAD$ strengthened considerably after the 2000 and 2008/2009 recessions.

Fear CAD$ rate cuts at your own peril. The evidence isn't good in support of a weaker CAD$.


Keep in mind what inversion really means -- that cash is a better investment than long-term investments. Which means that there should be really good demand for CAD$ as inversion continues.
Sr. Member
May 2, 2019
504 posts
602 upvotes
Vancouver
wolfs004 wrote: Better convert to USD, Bitcoin, Brampton condos, Greek bonds or beyond meat before these cuts.
For everybody to appreciate how funny the joke is, fun fact: recent yield on 10 year Greek bonds is less than on 10 year US Treasuries. It's an absolutely atrocious investment from risk/return perspective.

USD is not that bad of an investment, though, it has more upside potential. (Together with more defensive JPY or CHF.)

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