Rates of Change

There's no sense in pretending
Your eyes give you give away
Something inside you is feeling like I do
We've said all there is to say
--Tom Petty

The action in long bonds has to have bureaucrats quaking in their boots. Despite efforts to jam interest rates lower, yields are headed the other way as supply swamps demand.

This action further reflects the inevitable corner policymakers are painting themselves into. The more you try to keep interest rates low by printing money, the more bondholders want to sell their paper as it declines in value.

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