Economics
There's a Huge Disagreement Between Bonds and Stocks
- Equity investors are betting on Trump to trigger U.S. growth
- Government bonds yields signal economy may be cooling off
Hasenstab Says Treasuries Are in Bubble That's Set to Pop
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Markets are taking sides when it comes to the direction of the U.S. economy.
In the green corner are stocks. The Standard & Poor’s 500 index is just 0.2 percent away from a record high reached in March on bets that Donald Trump’s administration will push through tax-code changes to spark growth. In the red corner sit U.S. government bonds, where benchmark 10-year Treasury yields have unwound almost half of their post-election increase, suggesting a far more pessimistic view the economy.