By Bill Bonner, Daily Reckoning.com.au:
Dow up again – 51 points. But bond yields rising too… the ten-year now over 1.6%.
Perhaps we have seen the bottom of the great bear market in bond yields.
“You know, if you look at a chart of yield over the last 200 years,” says Rob Marstrand, our Family Office chief analyst, “you see something remarkable. Yields have been going down almost the entire time. There was a major spike up in the ’70s… and then down again. And now, they’re at their lowest point in two centuries.”
That trend may have now come to an end, just in the last few weeks…or not.
We don’t know. We won’t know for months…
What we do know is that our leaders’ efforts to lift the economy out of its funk have failed. They claim to have ‘whatever it takes’ to make people better off.
Which is what we’ve been talking about for the last few days. “Maybe they don’t”, was our point of departure. Today, promise, we reach our destination.
First, the world’s leading economies are all slowing down. Here’s the latest from the New York Times: