We haven’t seen it yet, but we’re certain that we will…
Someone is going to say that the reason that bonds sold off, with yields ending higher than they started with is somehow a response to the failure of the Deficit Commission to get 14 votes.
They’ll say that this the bond vigilantes dumping 10s and 30s on the idea the US can’t get its fiscal house in order, as evidenced by today’s news.
Of course, that’s nonsense on stilts, since nobody ever expected the Deficit Commission to get all the votes.
And beyond that, there’s no evidence that the bond market ever moves on anything regarding the deficit (well, the US bond market that is). And then add in that we got “risk on” across equities and commodities.
When someone sees that article, or hears it on CNBC, please let us know in the comments.
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