One of the more childish sell-side phrases that’s been bandied about for the past year is the so-called “bondcano”. I’ve pointed out many times the fallacy of the phrase and today it’s getting the treatment. US bond yields are getting thumped as the commodities boomlet deflates:
I expect to see short-end yields rise further with the Fed but not long. It’s even more obvious in Australian markets:
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Rate hikes are almost priced out at the short end and the terms of trade have huge falls ahead yet with iron ore. What fiscal maniacs do about house prices will also bear upon it.
