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Home » Collapse » The Annotated (223 Year) History Of The US Bond ‘Bubble’ | Zero Hedge

The Annotated (223 Year) History Of The US Bond ‘Bubble’ | Zero Hedge


The Annotated (223 Year) History Of The US Bond ‘Bubble’ | Zero Hedge.

The last few days have seen significant shifts in the term structure of US Treasury bonds; auctions have not gone well and despite the world’s expectations for ‘taper’ to lead to a surge in rates, the long-end of the bond-market has rallied. While Goldman might believe the ‘bond bubble’ is starting to pop, the following 223 years of Treasury yields (through free-markets and centrally-planned) sheds some light on what the ‘new normal’ level of rates really represents because, as we noted previously, the world is so levered now that any ‘reversion’ in rates is simply unthinkable.

 

 

Notice any difference pre- and post-Fed?

 

Chart: Goldman Sachs

 


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