July 27, 2021

Why Interest Rates Are Falling

#*!? CRASH BAM @#$ Suddenly, markets (well, at least the bond market) now see falling interest rates in the short and intermediate term. The 10-Year U.S. T-Note fell from 1.47% on June 30 to close at 1.29% on Thursday July 7 (a big move in just four market sessions). Some of the rapid fall was due to short covering, so the slight give back on Friday (to 1.36%) wasn’t a surprise. For context, the 10-Year T-Note yield closed as high as 1.53% on June 24. Such moves in bonds are not run of the mill. 

This could not have happened if the bond market gurus truly believed in the inflation narrative. History has shown that the bond folks are better at the underlying economics than are the equity people. Our regular readers know our long-held view that interest rates would be falling as the…

Read full article here: www.forbes.com