Quote from black diamond:
I'm not saying you are wrong but I don't understand how this can happen. The govt bond market is deep and hard to manipulate, not like an indidvidual stock. I am sure it takes billions of $ just to move the 10 yr rate by a basis point or two. How could long term rates be manipulated up without somebody agreeing to borrow billions of $ at higher than reasonable rates?
The unusually low long term rates we had for a while were a little easier to understand - asian central banks were looking for a safe place to invest lots of dollars we were sending them. You could call it currency manipulation or just them acting rationally, but either way there was a story. But I don't see a story that goes with the recent steepening other than market forces, inflation fears, and where we are in the fed cycle.
Do you have a theory of how this is happening or just a feeling the curve is too steep?
