Macro Strategy Insights

Bond Yields Have Been Behaving “Normally”

For all the talk about Bond Vigilantes and Operation Treasury Twist (Treasury buybacks which are NOT QE), bond markets seem to be quite rational. This isn’t a particularly “well-fitted” graph, but the gist of things is that the price of diesel and bond yields seem to move in the same direction, at roughly the same time. I picked diesel because it permeates the economy more than the price of gas at the pump (and reflects bottlenecks in refining not picked up by the price of oil alone). In addition to Treasury issuance, IG corporate bond issuance was incredibly strong this ... Bond Yields Have Been Behaving “Normally”

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