Bonds Have Gone Bonkers! What’s It Mean?

The stock market’s decline over the past few weeks has grabbed most of the mainstream headlines. But, the bigger and more worrisome move is what has occurred in the bond market.

On Monday, yield on the U.S. 10-Year Note dropped to 50bs of 0.5% down from 1.30% just three weeks ago.  This is a sign of true panic and that the U.S. and global economy are headed for a recession.

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The “iShares 7-10 Year Treasury (IEF)” is a popular exchange-traded fund (ETF).  The chart looks more like something from the dot.com or bitcoin bubbles than the $100 trillion bond market.  It is simply not supposed to go parabolic. Note, as price goes up yield goes down.

The uncertainty of the full impact of… Continue reading at StockNews.com

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