Economics
Wall Street’s Got It All Wrong When It Comes to the U.S. Bond Market
- Prognosticators may be misinterpreting decline in term premium
- The sky might not be falling after all, contrary to doomsayers
People walk by the New York Stock Exchange on March 7.
Photographer: Spencer Platt/Getty Images North AmericaThis article is for subscribers only.
What, exactly, is the bond market telling us?
It’s an age-old question on Wall Street, but one that’s gained newfound urgency as the topsy-turvy markets leave everyone wondering where the U.S. economy is headed. Yet to a small but growing number of analysts, academics and former policy makers, the standard answers may not apply.