Why not evaluate US government bonds like corporate bonds? Take a look at the balance sheet, cash flow, and anticipated future cash flow. Look at current management… where are the they taking the organization?
So the trend is not so good. Ever increasing debt implies more debt supply. Can the demand keep up. Not at current yields, no. Yields up, prices down.
Management? Fiscal discipline? Not anytime soon. Cash flow? The situation is not positive.
So I’m not very inspired to buy US Debt today. Maybe, maybe TIPS. But traditional US Bonds? Not with a credit report like this.