Sumary of Strange Bond Moves Could Signal Slower Second-Half Growth:
- A phenomenon that will fade once the effects of measuring from the past year pandemic-depressed price levels end and supply bottlenecks clear up..
- Following the release of the consumer price data Thursday, the benchmark 10-year Treasury note yield fell to 1.43%, its lowest level since early March, and down sharply from its recent high of 1.745% late that month..
- Lower yields translate into higher bond prices, not what might be expected, given the steady climb in inflation and the signs of economic recovery..
- for bonds—huge fiscal and monetary juice, double-digit economic growth, reports of widespread wage increases, plus expectations of more infrastructure spending and further reopening as vaccinations spread—is already priced into the market….