Monday, November 25, 2013

Climateer Line of the Day: Damn Gold With Faint Praise Edition

"Gold seems to anticipate monetary policy developments earlier than USTs. This is possibly because gold has, in the end, no intrinsic worth and no yield and is therefore hyper-sensitive to U.S. and global monetary policy."

HT: LearnBonds 

Update 8:01 a.m. EDT:

Just as equity is the longest dated paper and just as zero coupons have the highest convexity....