Playing the yield curve

This article was first published on Patreon on 5 July 2018

A week ago I wrote about the low-hanging fruit of macro investing. And the gist of that post was that a lot of investors get the macro story wrong because they fail to understand the economics. I gave two specific examples where people have it wrong: the Japanese government bond yield play and the Chinese US Treasury bond play.

Today I want to focus on macro strategies I think make sense. And I want to come back to the Chinese case to lead in to this.
It's the currency release valve for the Chinese
On Tuesday, I sent this tweet about the Chinese currency market:

Interesting. Another interpretation is that the market is forcing the peg lower as evidenced by a widening spread between offshore and onshore yuan https://t.co/...


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