The bond market is all about predicting the future. And recently, the bond market has been moving.
Yields are mostly coming down, and there’s been volatility in the price of bonds. Seems like the bond market is trying to say something.
“Typically the bond market, and specifically the U.S. Treasury market, is a very good predictor of where the economy is headed,” said Rick Polsinello, a senior market strategist at the Franklin Templeton Institute.
Investors can buy Treasurys that last three months, two years, 10 years, or 30 years. And if they’re going to lock their money up for that amount of time, they need to have an idea of what could affect their investment in that amount of time.
So bond market message number one comes from the near future, a couple years out, where we see the rate of return on Treasurys, AKA yields, falling.
“The bond market is telling us that it’s expecting the Fed to cut imminently, and the…
