WSJ: A Bond Selloff Is Rocking the World. You Might Want to Take the Other Side.

Posted: Jan 12, 2025

  • A bear steepening trade is affecting the bond market and causing concerns
  • Wall Street is concerned about rising bond yields
  • Recent rise in yields may not be due to stronger economic growth but due to higher discount on long-term bonds
  • Some analysts attribute increase in bond yields to potential negative impact of Donald Trump's tariffs and tax cuts on the global economy


What do people on Reddit think?

🚨 Reddit sentiment: mixed/negative - The comments reflect a mix of skepticism, concern, and caution about the bond market, economic policies, and future market conditions, with no consensus on a positive outcome, hence reflecting more negative sentiment overall. Summarized comments: - There's a discussion about buying bonds due to high yields/prices falling, but concerns if fears are justified - Debate on why recent rise in yields doesn't reflect stronger economic growth, with different views on what drives yields - Concerns about market speculation or sign of prolonged bond price drop - Reference to a 30-year bull market ending in 2021 and skepticism about short duration of bond bear market - Mention of US fiscal policy and its effects on deficits and bond markets - Discussion on Federal Reserve's potential actions and economic impact - Concerns about housing market and potential economic scenarios like stagflation or depression - Mixed views on long-term duration risks and yields values - Mention of stock market dynamics such as possible Tech pullbacks



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