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This is incredible: The difference between Microsoft's 30Y bond yield, $MSFT, and the US 30Y Treasury yield is just 20 basis points, the lowest on record. The extra yield that investors demand to own Microsoft’s 30Y bond over 30Y US Treasuries is now down -100 bps since 2020. This comes as the 30-year Treasury yield has risen by 380 bps over the last 5 years. Microsoft is now on track to have a lower credit risk than the US by as soon as next year. Meanwhile, the 10-year annualized return in 15Y+ Treasuries dropped to -0.6%, the lowest in history. Deficit spending is crushing the US bond market.
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