Record-breaking yields in the Treasury market are part of action not seen in bonds for 40 years, according to JP Morgan's Bob Michele.
Liquidity issues in which buyers and sellers are having a hard time coming together on prices are just part of the problem, Michele, the firm's chief investment officer and head of global fixed income, said Monday on CNBC's ""I've been doing this 40 years.
In fact, Michele said that at one point he received a call from JP Morgan Asset Management's London office to say that there were no offers on the 30-year bond.The liquidity issues happened as the 10-year yield at one point fell below 0.4% and the 30-year bond dropped below 1%, both firsts in a bond market that has seen a stampede of buyers looking for safety amid the coronavirus scare and a price war in the oil market.
Michele said the Federal Reserve is going to need to provide more easing, and he expects an announcement could come as soon as today. The Fed last week
steveliesman rinsana Thank god for Steve and Ron bringing facts to the table. Fast Money, revisionist Guy Adami talking about the misgivings of the 2008 Fiscal and Fed stimuli, ignores the 11 year bull run that Trump’s ill conceived trade policies have had on the US economy.