When economy recovers, interest rates go up or, at least, that’s what we’re used to see; however, interest rates in the US are moving in a funny way, we should keep an eye on them in the following weeks
We just saw an interesting chart shared by Doug Short:
At the end of 2013 (when tapering began) the yield of the 10 year bond started going down as it wasn’t able to break the pre-crisis resistance.
Most of all, bonds may be about to break a support, and their yields may move even lower.
If the yield really decreased, then we would have to think that the bond market does not believe in the US recovery, and, as you know, the market is always right, even when it’s wrong.
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