Rip Van Winkle's Bond Nightmare

Rip Van Bondtrader, waking to negative bond yields after a decade of slumber, would rather go back to sleep.

Go back to sleep.

Photo by Kean Collection/Getty Images

Imagine yourself as Rip Van Bondtrader, waking after a decade of slumber, and eager to make some money in the markets. Surveying today's backdrop, you'd probably conclude that the euro experiment is a failure. You'd be astonished that the Federal Reserve's target interest rate has been at 0.25 percent for the past six years. And you'd be flabbergasted to discover that your peers were buying, selling and investing in government bonds that trade at negative yields. In short, you'd want to pull the duvet back over your head, and go back to sleep.

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