December 22, 2011
A Chart That Might Make Bond Investors Nervous
Bond Vigilantes, Bond Vigilantes
M & G Investments
Government bond investing used to be about analysing and assessing economic data. Judging by the last few months, not any more.
At the beginning of June, I argued here that US economic data was a horror show and was falling off a cliff, and bond investors (and risk assets generally) seemed not to have noticed. The chart I posted back in June stoked quite a bit of reaction, with the main points of contention being that (1) government bonds would surely sell off as inflation rose; (2) government bonds would surely sell off as sovereign debt levels rose; (3) the weaker economic data was due to the Tsunami on March 11th and would prove temporary; (4) there was a risk of a...
TAGGED: Bonds, Mike Riddell