Loading ...This is how Edwards recapped his take on the recent – and future – moves in bond yields:
A key part of the Ice Age has been the prediction that US and European 10y government bond yields would fall to levels never previously seen – replicating Japan’s experience. We were told that this would never happen in the west because policymakers would not make the same mistakes Japan made! But with European yields plunging to new negative lows and the US yield curve giddy with inversion, the sceptics are now seriously contemplating the brave new world in which US 10y bond yields fall below zero.********************************************as Edwards notes, “the rumblings of the US bond market have now turned into an ear-piercing scream that a recession is close and the Fed needs to start cutting rates quickly“