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)

Comment Options
Trader#D696
Dec 7, 2025 4:13pm
Permalink
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.
Reply
Czyker26
Dec 7, 2025 11:56pm
Permalink
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 ????
Reply

  • Related Stories

A Divided Fed Faces Its Most Contentious Meeting in Years
From beemarkets.com | Dec 8, 2025 | 3 comments
The Federal Open Market Committee (FOMC) is heading into its final meeting of 2025 amid an unusually high level of internal disagreement. Five of the twelve voting members have publicly voiced skepticism or outright opposition to further rate cuts, while three governors at the Fed’s Washington headquarters support easing. This level of division three or ...
Cooling Core Inflation Boosts Odds of Fed Rate Cut to 87% Amid Diverging Policy Views
From beemarkets.com | Dec 7, 2025 | 1 comment
The latest inflation data from the U.S. Department of Commerce, though delayed due to a previous government shutdown, has delivered a pivotal signal to markets. The core Personal Consumption Expenditures (PCE) price index excluding food and energy rose just 0.2% in September and 2.8% year-over-year. The annual figure was 0.1 percentage point lower than ...
Week Ahead: Fed to Cut but RBA, SNB, and Bank of Canada Set to Hold, and Market Thinks They are Done
From marctomarket.com | Dec 6, 2025
The US dollar traded heavily last week, losing ground to all the G10 currencies, but the Swiss franc. The franc seemed to be dragged down by the use of it rather than the yen as a funding currency. Japanese officials protested the pace of the yen's weakness, while Swiss authorities seem to welcome the franc's pullback, not only against the dollar but the ...
  • Story Stats