Some Perspective…

There has been a lot of talk about the “spike” in bond yields over the past week. Some are declaring the end of the bull run in bonds and some are even calling for a complete spike in yields. Everyone is so sure that bond yields are now headed higher since “risk-on” is back as the Stock Market hits 3.5 year highs.

But we all need some perspective. The “spike” that we saw last week was not inordinary. What was abnormal was the very condensed volatility we saw in bonds over the past few months as stocks rallied. Now we are finally just reverting to the mean.

$TNX – 10-year Treasury Constant Maturity  Rate

 

 

 

Tags: $TNX, $ZN_F, $TLT, $IEF, $MACRO

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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