So much winning! Global equity markets are pushing higher, and many are at all-time highs. Chinese equities and the yuan are perking up. The threat of tariff wars is receding. Industrial commodity prices are turning up. Housing starts in the US are soaring. Consumer confidence is high. Financial market fundamentals are very strong.
So why are yields on Treasuries so low? Why are real yields on 5- and 10-yr TIPS near zero?
The following charts flesh out the details and speculate on what is driving this amazing apparent divergence between stocks and bonds.
Chart #1