- "Wisdom is one of the few things that looks bigger the further away it is..…."
US 10 year Treasury hits 2.59%.
In Bond Markets lies the truth. Leaving aside the false-start blips early last year and in 13/14, the current rise in rates looks the clearest chart signal rates are normalising since before the crisis. Is the Bear Break above 2.50% in US rates the signal we've been waiting for?
Big names on the tapes are sagely confirming it's the beginning of the bond bear market! The End of Days!
Predictions say the 10-year bond will hit anywhere between 3-3.5% in the next 12 months. Some folk say the Japanese are to blame, while others are panicking about a bond debacle leading to a slew of defaults as sovereigns struggle to launch their front-loaded 2018 funding plans. (Some $65 bln of new government funding due this week!). Others are looking for the hi-yield bond markets to melt-down. There are some saying buy Financials as higher rates are great for their margins, while doomsters say dump tech stocks.