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October 19, 2005

Bond market is roiled, Wed., Oct. 19, 2005, 8:02 AM

Yesterday, I saw a bond market in absolute turmoil. Nothing that the Bond King did for CNBC helped one iota. Bonds were dumped. Yields popped.

So this morning I held the Cara Crystal Ball up to the Bloomberg monitor and lo and behold I saw (i) a mild relief this morning, followed by (ii) more selling off of bonds later in the day, and through the rest of the week.

You see, no matter how much the TH's on CNBC like Dr. John Rutledge protest, the world's central banks are taking universal action to try to nip inflation before it gets out of hand. That means (i) there really is an inflation problem, and (ii) interest rates are going higher.

And that's bad for bonds.

Posted by Posted by Bill Cara on October 19, 2005 08:03:36 AM | Category: Bonds

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