Not sure if I understand the bond market.
But if inflation is low, a 3% bond rate is good.
But if inflation is at 9% a 3% bond rate sux.
So anyone who has one wants to dump it.
Is that the gist of this?
I often remember Rush saying that the bond market goes in the reverse of the economy.
“Is that the gist of this?”
Yes, but there’s an additional factor. Back in 2008 when they started the bailouts, in order to stop all the money they were printing from causing inflation, they did these massive bond issues to take money out of circulation. The hopes were that, by the time the bonds matured and the money went back into circulation, the economy’s productivity would have recovered enough to negate the inflation.
Well, if people are selling the bonds prematurely, then that plan just went teats up I think.