German Bunds : ''The short of a lifetime'' - Bill Gross

[mr_anderson]

Yields on Germany’s bunds surged the most in two years as traders shunned an auction of the nation’s debt.
Bond titan Jeffrey Gundlach of DoubleLine Capital egged on the declines, saying he’s considering making an amplified bet against the securities.
His comments echoed Janus Capital’s Bill Gross, who once managed the world’s largest bond fund. He said bunds were the “short of a lifetime.”

@Le Twittersphere

‏@JanusCapital
Gross: German 10yr Bunds = The short of a lifetime.
**Better than the pound in 1993. **

Only question is Timing / ECB QE
…
“These are influential voices that offer a contrarian view when the German bond market appears to be at an extreme level, so there’s definitely going to be an impact on the market,” said Salman Ahmed, a global strategist at Lombard Odier Investments Managers in London.
…
Germany got bids of 3.649 billion euros at its notes auction, short of the 4 billion-euro sales goal. It’s the first time an auction of five-year debt missed the target since Jan. 21 and the third bond sale that was technically uncovered this year, according to data compiled by Bloomberg. The nation sold the securities due in 2020 at an average yield of minus 0.07 percent.
…
Norway’s $900 billion sovereign wealth fund, the world’s biggest, is betting the recent bond gains won’t last. Speaking in an interview in Oslo, Chief Executive Officer Yngve Slyngstad said he’s weighting the 2.5 trillion-krone ($334 billion) bond portfolio to shorter maturities, meaning it will outperform when rates rise.

bloomberg.com/news/articles/2015-04-29/euro-area-bonds-decline-before-13-billion-of-debt-auctions

Is the negative interest rate party coming to an end so soon ?

[yoganmahew]

Well, is Mr gross still shorting the UST? Or the jgb?

[supermonkey]

Maybe as great an opportunity as shorting the French Franc in 1993?

[mr_anderson]

Ahh youse are all smart-arses !

[Andy]

@mr_anderson

Yields on Germany’s bunds surged the most in two years as traders shunned an auction of the nation’s debt.
Bond titan Jeffrey Gundlach of DoubleLine Capital egged on the declines, saying he’s considering making an amplified bet against the securities.
His comments echoed Janus Capital’s Bill Gross, who once managed the world’s largest bond fund. He said bunds were the “short of a lifetime.”

@Le Twittersphere

‏@JanusCapital
Gross: German 10yr Bunds = The short of a lifetime.
**Better than the pound in 1993. **

Only question is Timing / ECB QE
…
“These are influential voices that offer a contrarian view when the German bond market appears to be at an extreme level, so there’s definitely going to be an impact on the market,” said Salman Ahmed, a global strategist at Lombard Odier Investments Managers in London.
…
Germany got bids of 3.649 billion euros at its notes auction, short of the 4 billion-euro sales goal. It’s the first time an auction of five-year debt missed the target since Jan. 21 and the third bond sale that was technically uncovered this year, according to data compiled by Bloomberg. The nation sold the securities due in 2020 at an average yield of minus 0.07 percent.
…
Norway’s $900 billion sovereign wealth fund, the world’s biggest, is betting the recent bond gains won’t last. Speaking in an interview in Oslo, Chief Executive Officer Yngve Slyngstad said he’s weighting the 2.5 trillion-krone ($334 billion) bond portfolio to shorter maturities, meaning it will outperform when rates rise.

bloomberg.com/news/articles/2015-04-29/euro-area-bonds-decline-before-13-billion-of-debt-auctions

Is the negative interest rate party coming to an end so soon ?

Read this yesterday. I think he makes a good argument. Eventually the yield will have to turn positive.

Does anyone know how to calculate a negative yield in Excel?
Would like to work out the maths on it.