“In the good ol’ days, we would worry about bond yields (and thus bond prices) compared to silly things like the inflation rate, dividend yields, mortgage rates, etc. But it is a brave new world now.
The key driver for valuing Treasury bonds at the moment is the utility they offer as a form of collateral among banks loaning money to each other. So with Europe’s debt markets in even greater turmoil now than when Greece’s debt got a “haircut” last year, T-Bond prices are zooming up once again to the top of the 3-decade rising trend channel.”
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