NEW YORK TIMES: …A bond sell-off has been anticipated for years, given the long run of popularity that corporate and government bonds have enjoyed. But most strategists expected that investors would slowly transfer out of bonds, allowing interest rates to slowly drift up.
Instead, since the Federal Reserve chairman, Ben S. Bernanke, recently suggested that the strength of the economic recovery might allow the Fed to slow down its bond-buying program, waves of selling have convulsed the markets…
The recent pain has spilled over into stock markets, pushing the Standard & Poor’s 500-stock index down an additional 1.2 percent on Monday. But the real pressure has been felt in the bigger and more closely watched bond market. The value of outstanding United States government 10-year notes has fallen 10 percent since a high in early May… (more)
EDITOR: In the course of three business days, Interest rates on 10 year Treasury Notes have gone up about half of a percent! One of the causes is due to a melt down in the Chinese stock market resulting from troubled economic times.
