, Columnist
This Bond Selloff Looks Overdone
Central bankers should backpeddle and Japan could step in.
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It could be a bond market correction, or the start of a rout, or the seeds of a full-blown tantrum. But it's none of these. In Europe, it's just overdone.
Friday's fixed-income selloff misses the fact that nothing fundamental has happened on the economic data front, or even politically -- we've just been talked at by central bankers getting in their "we warned you" excuses on overpriced assets. As Gadfly argued Thursday, clouds hanging over the economic and inflation outlook mean there's no realistic prospect of a change in monetary policy.