, Columnist
Debt Market's Perilous Oil Proxy
Energy prices are an important wild card in a world of expensive government bonds.
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Evidently, this is the most dangerous bond market in history.
Here’s the logic behind this statement, which was included in a Bloomberg News headline Monday: Yields are so low that the smallest of rate increases would wreak havoc on prices, causing billions of dollars of losses for investors worldwide. Of course, similar warnings have been sounded for years, but yields only dropped further and further, fueling huge bond rallies and fostering deep skepticism about any bond-market warnings.