Are Bonds the next bubble?
Interest rates have been extremely low for a good 5+ years now. And we know its because of the Fed keeping the discount rate at zero and pumping free money into the sytem. But nothing goes on forever and I have to wonder is the bond market the next bubble. Look at all the other bubbles on this chart, while bonds have just been moving upward over the last 30+ years. Will we see 1% 30 year mortgages? I really doubt it but there are 2.5% 15 year mortgages now.
Tags: bonds market bubbles
Only as long as the Fed remans in its MO. If and when it stops pumping money into the system, we may see
a different pattern. But hopefully, it won’t affect the bond market too much to bubble.