When the media and most Wall Streeters talk about what drives the Treasury market they talk about silly things like inflation expectations, economic expectations, interest rate expectations. As if "expectations ever turn out to be right. They say that yields rise when "the market" expects a stronger economy and rising inflation. They say that yields fall when "the market" expects low inflation and a weak economy. Supposedly the two go hand in hand.
Why Treasury Yields Are Rising- It's SAD
You need to login to view this content.
David Stockman’s Contra Corner isn’t your typical financial tipsheet. Instead it’s an ongoing dialogue about what’s really happening in the markets… the economy… and governments… so you can understand the world around you and make better decisions for yourself.
David believes the world -- certainly the United States -- is at a great inflection point in human history. The massive credit inflation of the last three decades has reached its apogee and is now going to splatter spectacularly.
This will have lasting ramifications on how governments tax and regulate you… the type of work you and your family members will have available and what you get paid… the value of your nest egg… and all other areas comprising your quality of life.