|2-year U.S. Treasury Yield (stockcharts.com)|
|1-year U.S. Treasury Yield (stockcharts.com)|
But Bass said he'd rather own gold over U.S. Treasuries (paper) in the end. He was interviewed on Bloomberg TV on April 9, 2013. Watch the full interview below (the Bloomberg video player might appear below the blog's template with a duplicate video... I'm looking into the issue).
Here's what Kyle Bass said at 9:12:
"If something happens in Japan like we think it is going to happen, I think U.S. Treasury nominal yields will go negative in a flight to quality. Maybe gold moves up and Treasuries actually get much stronger for all the wrong reasons, not as an endorsement of U.S. fiscal policy because it is the only place money has to go. If monetary policy is the only game in town, we are all in for a world of trouble. That is the way we see it."
Source: Bass Sees `Beginning of the End' for Japanese Bonds (Bloomberg.com)