PM Fund Manager: “30-yr Treasury Market is Starting to Price in Economic Armegeddon”
SilverDoctors.com
August 15, 2014
Low inflation would not explain the 80 basis point drop in long bond yields since January 1st.
“Flight to safety” would flow either into the very short end of the yield curve or into gold or under the mattress.
With retail sales, auto sales, and home sales all collapsing, the only explanation left is that the Treasury bond market is pricing in a severe economic downturn. This would explain also why high yield bond spreads have widened considerably over the past month. The big drop in oil prices this week would further affirm this.
The Treasury bond market is starting to price in economic Armegeddon.
The Rest…HERE
