Bond Market Slams on the Brakes

Get thee over to right now and read the terrific piece Aaron Lucchetti put out this AM. (I’m not saying that just cause he agrees with me here)

Its titled Bond Market Slams on the Brakes, (A Run Spanning Two Decades Reverses Direction, and Losses Could Be Painful).”

Note on this pop-up graphic how the yield of the 10 year note has fluctuated over the past six years (who says bond holders sleep better?).

Also, if you review these graphs below on Corporate bonds (investment grade and junk), Housing Market and Agency, and Consumer Mortgage and Credit Card rates, you will have a better idea of the sort of threat a too sudden rise in Bonds represents to the economy:

WSJ bonds.gif

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