Global Interest Rates and the Bond Vigilantes
Ever since the Treasury bubble popped at the beginning of the year we have seen the record low rates on the 10-Year go from 2.03% all the way to a high of 3.75 on Thursday. All of this in spite of the Fed trying their hand at quantitative easing in an attempt to keep rates low.
Looking at the chart below it is obvious that the “bond vigilantes” don’t think that it is worth loaning money to the government for 10 years for only 2 or even 3% right now.
10-Year T-Note Yield
Turning out attention to the G-10 we can see that bond vigilantes are not fans of any governments debt as rates have been rising across the board.
G-10 Bond Rates
Obviously no one wants to be holding any governments debt at these levels. Maybe this time the 30 year long bond bull market really is over as we enter a new period of at least strong and possibly high/hyper inflation.
30-Year Bond Bull
Obviously only time will tell but it appears as though the bubble has finally been popped. As you can see in the chart above a break above 5% in the long bond yield would break the 23 year long down trend line. The implications are anything but bullish for the global economy.
Happy Trading,
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