Opening Bell Daily: “The $28 trillion Treasury market is flashing a warning for the economy”
By datatrekresearch in IN THE NEWS
...."In any case, to DataTrek Research cofounders Nicholas Colas and Jessica Rabe, zooming out provides a less insidious explanation for the bond market.
Real 10-year yields — that is, adjusted for inflation — have averaged 1.9% over the last 12 months, just below the 2.1% seen from 2003 to 2007, an era when the debt-to-GDP ratio was half of what it is now and economic growth was robust.
“As long as the US economy continues on a firm footing,” Colas and Rabe said, “stocks should be able to take high yields in stride since they are a function of solid growth rather than something more worrisome"....
Full article here on Opening Bell Daily.
