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The holiday rally in bonds is good news for the US economy, according to Paul Krugman.
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The top economist pointed to falling bond yields in recent weeks.
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Lower yields spell good news for areas like housing, thanks to the impact of lower borrowing costs.
The massive rally in bonds is excellent news for the housing market and the enormous US debt pile, according to Nobel laureate Paul Krugman.
The top economist pointed to the recent jump in bond prices and slump in yields. For instance, the yield on the 10-year US Treasury has plunged more than a full percentage point from its peak in October, slipping to around 3.9% on Friday.
Meanwhile, the iShares 20-Year Treasury Bond exchange-traded fund has soared over 20% from levels since late October, indicating long-dated Treasury bonds have officially entered a bull market.
“Never mind the stock market; the rising bond market has given us a holiday gift, and a…
