Global Ten Year Yields

It ain't no use
We're headed for disaster
Our minds said no
But our hearts were talking faster
--Donnie Iris

Panoramic view of yields on 10 yr sovereign debt from various countries. That the US t-note has been catching a bid should be no wonder as fixed income buyers worldwide seek some modicum of positive yield.

The common interpretation of this pattern of behavior is 'recession coming.' Investors pile into sovereign debt for protection when perceived economic and market risk goes up.

On the other hand, central banks have so thoroughly distorted risk markets that it is difficult to identify just what is driving this unusual behavior.

It is less difficult to imagine that it will end in disaster.