Bond Market Looks Expensive, Until You Factor in Threat of War
- Treasury yields near 2017 low as Trump, Kim Jong Un spar
- North Korea on traders’ minds with few big data releases ahead
The Biggest Risks Facing Bond Markets
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The bond bulls in the $14 trillion Treasuries market didn’t expect -- or want -- to be proven right in quite this manner.
Ramped-up bellicose rhetoric between U.S. President Donald Trump and North Korean leader Kim Jong Un has stoked fears of imminent war, driving 10-year Treasury yields to the lowest level since June. Unless the two adversaries tone it down, haven demand is likely to overwhelm traders this week, with few economic data releases significant enough to move markets.