, Columnist
The Bond Market's Latest Rally Is No Knee-Jerk Reaction
Unlike many prior squeezes in U.S. Treasuries, there are no signs of wretched excess.
The bond bulls are in charge.
Photographer: Michael NagleThis article is for subscribers only.
Many pundits are describing the latest move in the bond markets as little more than a knee-jerk reaction to rising geopolitical tensions amid a broader risk-off environment. They'd be wrong.
Unlike many previous squeezes in U.S. Treasuries, this latest move -- which has pushed yields on 10-year notes to the lowest of the year -- is important because it came without the usual signs of wretched excess in the form of speculative over-positioning. Although this rally has had its share of momentum players seeking to ride the wave, those types have been bullish for months and did little to exacerbate the move.