Death of Bond Bull Market Exaggerated as Volatility Signals Calm
Bill Gross Says 3% Yield on 10-Year Treasury Is Possible
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U.S. government bonds have slid this week, yet fears of a market rout seem overblown.
The climb in Treasury yields has led Janus fund manager Bill Gross to declare the end of the bull market, but he doesn’t foresee dramatic losses. Volatility remains near record lows, according to three-month options on 10-year Treasury futures, suggesting investors aren’t worried about big price moves in either direction. That contrasts with the jump in volatility seen during the “taper tantrum” of 2013 when Treasury yields spiked as Ben Bernanke said the Federal Reserve was considering reducing its balance sheet.