Bond market rebound is bad news for the economy

Bloomberg/Gary Shilling/6-29-2022

graphic image of the inflation spiral higher wages, higher inflation, higher wages, etc

“The good news is that yields in US Treasury securities may be near their peak. The bad news is that makes the recession I’ve been forecasting since February more likely.”

USAGOLD note: We would like to believe that interest rates are now at their peak, but with inflation still revving its engines, that outcome is still up in the air, in our view. We know that peak interest rates are the current Wall Street default forecast. We also recall, though, that as the 1970s inflation spiral spun out of control, those in charge were forever forecasting its demise – a decade of official denial while prices and rates marched steadily higher.

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