According to the latest research from analysts at Bank of America Merrill Lynch, investors are increasingly worried about a massive bond market pullback.
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So, is the United States headed towards deflation? While the financial markets have worried about it off and on for many months, of more concern right now is a potential bubble in the U.S. Treasury market. My colleague, Investment U’s Alexander Green, has noted several times the dangers of buying
The brickbats are starting to pour in. For months, I’ve warned readers about the bubble developing in long-term Treasury bonds. Yet what was the top-performing asset class in the first half of 2010? You guessed it: Long-term Treasury bonds, with a total return – price gains plus interest – of 13.2%.
“The ranks of Treasury bulls are growing. A new Citigroup (NYSE:C) survey of investors found 60% expect 10-year Treasury yields to spend the next three months between 3% and 3.5%, Citigroup