Investors should treat analysis of bond yields with caution
The exercise is more like reading tea leaves than scientific endeavour
It was james carville, an American political strategist, who said, in an oft-repeated turn of phrase, that if he was reincarnated he would like to return as the bond market, owing to its ability to intimidate everyone. Your columnist would be more specific: he would come back as the yield curve. If the bond market is a frightening force, the yield curve is the apex of the terror. Whichever way it shifts, it seems to cause disturbance.
This article appeared in the Finance & economics section of the print edition under the headline “Reading tea leaves”
Finance & economics October 14th 2023
- Corporate America faces a trillion-dollar debt reckoning
- Retail investors have a surprising new favourite: Treasury bills
- How economists have underestimated Chinese consumption
- Investors should treat analysis of bond yields with caution
- Claudia Goldin wins the Nobel prize in economics
- To beat populists, sensible policymakers must up their game
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