Bond Traders Defy the Fed and Spark Heated Debate on Wall Street | Metals Mine

  • Bond Traders Defy the Fed and Spark Heated Debate on Wall Street

    From finance.yahoo.com

    The bond market’s reaction to the Federal Reserve’s interest-rate cuts has been highly unusual. On that point, at least, there is broad agreement on Wall Street. By some measures, a disconnect like this, with Treasury yields climbing as the central bank lowers rates, hasn’t been seen since the 1990s. What exactly it means, though, is another matter. Opinions are all over the place, from the bullish (a sign of confidence that recession will be averted) to the more neutral (a return to pre-2008 market norms) to the favorite culprit of the so-called bond vigilantes (investors are losing confidence the US will ever ... (full story)

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Trader#D696
Dec 7, 2025 4:13pm
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This is one of the worst written most politically biased articles ever.

The writers should be fired, this is all propaganda and lies.

Bond traders are doing everything normal currently. The two year is about at the level of expected fed funds rate on the near future as it should be. The ten year is a little over a half a point higher. Looking at a long term chart of ten minus twos you can see that we are in a completely average spread range. That spread can and has fluctuated significantly, but our current levels are nothing but normal and average.

The Bond market is doing nothing unusual currently and is not signaling anything in either direction. It is simply pricing in an expected number of cuts in the near term. For the bond market to send a signal we need the two year to go lower as Fed feds go down but the ten year to go over 4.5%. Hanging around the 4% level means nothing currently.

Many people expect bond vigilantes to show up one day, but there is currently no sign of them. So everything in this article is provable false.
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Czyker26
Dec 7, 2025 11:56pm
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Trader#D696
| do not know who even hires these people to write this Horse Sh ... Bonds are doing fine. The tariffs are doing fine.

We just need to get the misappropriated funds that are mostly from the Democrats, out of the way. Then we can grow like gangbusters !!! 100's of BILLIONS, misappropriated and wasted. Do you know how rich we would all be if we stuck to the Gold Standard and put the politicians in jail who "so called" misappropriated funds ????
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