What’s Going on in the Bond Market?

What’s Going on in the Bond Market?

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Do it yourself: Mr. Bond no longer a superstar

The conventional market wisdom suggests that the bonds usually lead the change in market cycles. Traditionally traders have closely followed the yield curve shape, benchmark (10 year) yields and high yield credit spreads to speculate the near term moves in equity, currency and commodity markets. Two simple reasons for this traditional practice are – (i)    Bond markets are usually more correlated with the economy. (ii)   Size of bond markets is …