I have been yapping at the potential top in the bond market…thus a bottom in yields. But just to put it into perspective, take a gander at the following. The one thing missed is that markets will react to a potential change in direction…even if that move is minor in the big picture.
“…There has been a lot of talk about the “spike” in bond yields over the past week. Some are declaring the end of the bull run in bonds and some are even calling for a complete spike in yields. Everyone is so sure that bond yields are now headed higher since “risk-on” is back as the Stock Market hits 3.5 year highs.
But we all need some perspective. The “spike” that we saw last week was not inordinary. What was abnormal was the very condensed volatility we saw in bonds over the past few months as stocks rallied. Now we are finally just reverting to the mean..”
SOURCE: http://jerrykhachoyan.com
