EGF - Chart: The U.S. Bond Market Is A Tug Of War
By Blu Putnam
At a Glance
With the U.S. economy decelerating and central banks halting asset purchases, there's something for buyers and sellers of U.S. bonds.
The bond market is confused, with two prevailing viewpoints that are pulling it in different directions. The chart below illustrates this.
From the buyer's perspective:
There's no inflationary pressure. Wages are rising, but just above the inflation rate. Quantitative easing ((QE)) helped asset prices, but did nothing for prices of goods. Now, QE is being reversed and the Fed has already raised rates.
There's no U.S. recession, but the