Yes exactly.. Bond prices are supposed to be inversely correlated to equities.. So that is why portfolios traditionally run both, as a hedge.. If stocks rally, bond prices fall.
We are seeing the opposite..
Bond prices are rallying with the stock market..
Bond yields move inversely to bond prices..
So bond yields are plumbing new lows, (as capital rushes into bonds seeking safety, and signalling expectations of sub par growth and inflation moving forward) while simultaneously stocks rally (signalling good times ahead) breaking the usual correlation...
Wed, 23 July - Credit, page-70
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