Bond Market Doomsayers Sound Alarm as Margin of Safety Vanishes
- Investors need wake-up call, Treasury yields ‘not sustainable’
- Are bond traders right for wrong reasons? Complacency a risk
U.S. Debt Attracts Investors on Subdued Inflation
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Look around the $14 trillion U.S. Treasury market, and you’d be hard-pressed to find anything to suggest investors are even remotely concerned about the possibility of a selloff.
Bond yields keep falling day after day, bullish bets have soared and volatility has all but vanished. At the same time, traders foresee inflation subdued for decades and seem to have bought into the idea the Federal Reserve will take its time to trim its crisis-era bond investments.