Nice chart from Andrew Lapthorne of Société Générale describing the spike over the past few months in bond yields.
“Not that this seems to be worrying investors too much: equity markets have proven reasonably robust in the face of such rising yields and equity volatility continues to trade at reasonably low levels, while corporate bond spreads continue to head lower. As such it then seems that investors are happy to accept what they see in the better than expected economic data and to push interest rate worries to one side for the moment.”
Does this mean markets can absorb the coming “taper” or does it imply that investors are in denial?
Rapid bond sell-off yet to spook equity markets
Société Générale, August 19, 2013
Global Quantitative Research