NOMURA: This Is What It Looks Like When People Have Given Up On An Economy
All we can do is watch the 10 year bond yield grind lower and lower.
The entire world has bond mania as yields collapse at warp speed.
What the heck is going on? Basically there’s a mammoth flow of cash towards safe havens. German, U.S., Finnish, Canadian, Australian bonds… yields are dropping everywhere.
One of the best interest rates strategists there is, is Nomura’s George Goncalves, who has a great note about the entire market being “mesmerized” by Treasuries.
He does some great work here with the famous comparison of the U.S. rates path to Japan’s famous rate collapse over the last few decades, and he says that moves like this are what happens when people just give up on an economy.
Read Goncalves here …