The bond market appears to be signaling the worst is over for the economy

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Bonds have caught a bit of the stock market's optimism and are selling off on the idea that the still struggling economy has bottomed.

Bond strategists say the bond market is signaling that investors believe the worst period for the economy was April.

A woman in a face mask carries away fresh seafood after shopping at Captain White Seafood in Washington, DC, on May 29, 2020, as the District's phase 1 reopening plan begins.The bond market has caught a tiny bit of the stock market's optimism, and it's selling off on the idea that the economy may have hit rock bottom in April.

The May employment report is due Friday and is expected to show about 8.33 million jobs were lost and unemployment rose to 19.5%, according to Dow Jones. Some economists could revise their estimates after the ADP report, and Goldman Sachs economists said they will release their forecast after the weekly jobless claims report Thursday.

The 10-year yield's move higher took it out of a range that it's been at since April 16, when it rose above 0.74% Wednesday. "Stocks have gone crazy and bonds have not done much," he said, adding he expects yields to rise with the 10-year reaching 1% or higher by year end. Rupkey said the best solution for the economy could be a vaccine or signs the coronavirus is no longer a threat.

 

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This MF going to crash worse than 2008 and 1999. It is more phony than either.

Let's see what happens when those yields start rising. How far above 1% on the 10 year will it get.

This market is fake

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Or is signaling that the Fed's attempt to hold interest rates down is starting to fail.

Look at the future.

It's not just wait and see

Hope you are right.

hahahaha

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