Attention Economy


Friday, February 11, 2022

Bond Market Finally Wakes Up

Age of Innocence for Bond Traders Ends in Latest Inflation Shock
https://www.bloomberg.com/news/articles/2022-02-10/-a-bridge-too-far-bond-market-reels-from-latest-inflation-bomb
 
My prediction from last year (07/30/21):
Is the recent dip in Treasury yields a cause for concern?
https://thehill.com/opinion/finance/565660-is-the-recent-dip-in-treasury-yields-a-cause-for-concern
It is hard to justify today’s ultra-low yields on long-dated Treasuries based on fundamentals unless we are headed for a period of dramatically weaker growth that is accompanied by extremely low inflation, an outcome that appears unlikely. Rationally, we should expect yields to rise going forward.