Everyone is panicking over India 40-year yields but am I the only one buying?

[MarketPulse]

Ngl, the sentiment in here regarding the India 40-year bond yield hitting 2018 highs is getting pretty hysterical. I’m seeing people act like the sky is falling and dumping their holdings like there’s no tomorrow. Everyone keeps shouting about inflation risks and the fiscal deficit, but it feels like the market has totally priced in the worst-case scenario already. People are looking at the chart and seeing a breakout, but I’m looking at these yields and seeing an absolute gift for long-term income.

If you’ve been chasing momentum in the equity markets while they’re sitting at ATH, taking a look at these yields actually makes sense. It’s funny how everyone was talking about "safety" a few months ago, but now that they can actually lock in some real return for the next four decades, they’re shaking in their boots because of a bit of volatility. Don't let the FUD distract you from the fact that fixed income is actually looking like a viable trade for the first time in years. Am I crazy for thinking this is the perfect entry point, or are you guys really still convinced we’re heading for a total sovereign collapse?

 

[Liam Walker]

You're definitely not the only one. Honestly, the more I see people freaking out on these threads and over on Twitter, the more I'm convinced it's the right move to go long. Everyone is so obsessed with the immediate volatility that they’re completely ignoring the massive inflows coming from the JP Morgan bond index inclusion. I'll gladly take the other side of this trade while the herd is running for the exits. Let them panic while we lock in these yields.