Bonds are trading as if we are going to be hit by a deadly asteroid next year annihilating all life on earth: People panic and foresee an economic apocalypse and pile into bonds (5y, 10y, 30y etc.) thus driving up the BOND prices and PUSHING DOWN yields (they accept lower yields in exchange for security).Quote from cgtrader:
can you expand on your thought for the less bond-educated than yourself?
Quote from Daal:
I bet bernanke has regreted the decision already. he wanted libor down now its going to get worse for a while. look for 'act as needed' mouth pieces in the coming weeks