Government passes a hugely inflationary spending bill and we're heading down? Logic.
people want high fed rates for their bonds.
If you have $$$ and get a five year bond at 3.71% they are betting rates go up and they will stagger up.
Ie buy a five year today at 3.71
buy a 5 year in six weeks at 4.20
buy a 5 year in 12 weeks at 4.71
buy a 5 year in 18 weeks at 5.21
then hope for pivot.
you are loaded up for next 5 years with rates between 3.71 and 5.21
and the USD is the best dollar token there is.
This does not attract a guy without $$$
but if you have $$$ it looks like a good play.
Or...you have rates at 10% in 5 years and you did not do as good as you expected.
I think shorter duration, like 2 years is a better bet once we get to 5% short term rates, but I already allocated enough for something like that.
Right now, I am positioning to buy a few things in the next 3-6 mo, including bitcoin.
Stonks are cratering, what a market: more than 1000 points up down in two days.