Saturday, May 31, 2014

Why are yields low?

"Again, the reason bond yields are falling even as the Fed is getting out of the bond-buying business is that we are looking at a severe meltdown in global growth.  It is not because of ‘technical reasons’ or because ‘there are no bonds to buy.’  In fact, the world is awash in sovereign debt.  The reason why yields are so low is because they are predicting a meltdown in the global economy.”

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