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The Economist (June 8)

2019/ 06/ 09 by jd in Global News

“The long-term decline in bond yields” has entered “a new phase.” Tumbling precipitously, “the yield on a ten-year Treasury bond has plunged from 2.5% to 2.1% in the past month. Ten-year Bund yields have turned negative again and have reached a new all-time low.” All of this begs a fundamental question, “What will happen when interest rates eventually start to rise again?” It may seem that “the whole edifice of asset prices is founded on a low-rate regime. But what if that regime were to come to an abrupt eventual end?”

 

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