Bond prices continue to defy gravity, with the 10-year Treasury yield dropping about 65 basis points this year to 3.20 percent.
But the party may end soon. That’s because the Federal Reserve will eventually raise short-term interest rates from their current record lows near zero.
In addition, the exploding government debt burden threatens to spark an inflation outbreak, which would push long-term rates higher too.
Government debt totaled 56 percent of GDP last year. (more)
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