The markets are never a snapshot of the present. They’re a look ahead. It’s worth keeping in mind as commentators try to make sense of rising Treasury yields.
Take the Washington Post editorial board’s analysis of the recent jump. They write that, “Yields for long-term U.S. Treasury bonds shot up to almost 5.2 percent on Tuesday, reaching their highest levels in almost 19 years. That’s a warning sign about the wobbly state of the economy and yet another reminder of the unsustainability of federal spending.” No, not really.
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