US bonds are the new widowmaker trade

Monday, 2 August 2021

I have pointed out any number of Wall Street strategists that have been wrong about rising US yields this year as they await the inflation boogeyman. They all have their excuses:

Bonds were oversold and the recent bid is technical.
It’s Delta!
It’s Fed buying distorting the market.
It’s Japanese selling.

So on and so forth. The latest today is Morgan Stanley:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.