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Treasury bubble set to burst - Templeton's Hasenstab

Published 04/25/2017, 01:41 PM
© Reuters.  Treasury bubble set to burst - Templeton's Hasenstab
TBT
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TLT
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TLH
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  • A bit of a bond king in his own right, the manager of, among others, Franklin Templeton's $40B Global Bond Fund tells Bloomberg TV that buying long-dated Treasurys is akin to walking on a lake in April - still frozen, but going to crack.
  • He sees higher inflation brought on by a tight jobs market, a Fed behind the curve, and the retreat of overseas buyers.
  • 10- and 30-year Treasurys at around 2.5% are far from safe-haven assets thanks to the "tremendous amount of principal risk" that can come with even a relatively modest move in rates.
  • ETFs: TBT, TLT, TMV, TBF, EDV, TMF, TTT, ZROZ, VGLT, TLH, UBT, DLBS, TLO, VUSTX, DLBL, TYBS
  • Now read: What's Going On In The Bond Market?


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