FATT - What Do Bonds Know That Stocks Don't?

• The wild trading in Treasury bonds spooked investors last week as the 10-year Treasury yield hit 1.25% in the early hours last Thursday morning.
• Perhaps concern is over the Delta variant of Covid that is more contagious and is rapidly spreading across the world - and in unvaccinated parts of the United States.
• In addition to COVID, the other serious driver of falling yields with rising inflation is the Japanese and eurozone buying of Treasuries. Government bonds there offer no yields, so BOJ and ECB QE policies, in addition to the Fed’s QE, result in falling Treasury yields.

For further details see: