And I'm nowhere near the expert here to lead the discussion but I'm trying to get a post through automod so we can have a forum for those who are.
I'm very concerned about the rapid collapse in bond yields. As of this writing the 30 year treasury has continued its recent collapse down to 1.93%. Money is fleeing to safety very quick...so what are we missing?
Until the last couple days I've been telling myself the goldilocks story, that the falling yields are signaling a nice growth story without inflation risk. But in the last few days the moves have become large enough to look like a true flight to safety (to my eyes).
I've come up with two possibilities:
1) The risk to growth worldwide is significant and after a brief reopening burst we are headed back into deflationary pressures.
2) There is a massive geopolitical risk (fallout from covid origin?) that smart money is positioning against.
What do you guys think is going on?
Submitted June 21, 2021 at 12:50AM by EverybodyHits https://ift.tt/2Um6P4V
