‘Japanification Effect’ Means Treasuries Should Be This Sleepy
- TD Securities compares Fed policy to Bank of Japan action
- Unattractive to be outright short or long, TD’s Wen Lu writes
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Concern is swelling on Wall Street that sleepy markets are setting a trap for investors betting on continued tranquility.
But in the bond market -– the most soporific of them all -– it’s perfectly appropriate for volatility to be plumbing record lows, according to TD Securities, based on how little yields have been swinging.