From Wall Street Journal:



The article suggests that the drop in long-term rates may appear exaggerated, but it is likely to persist as long as investors maintain their expectation of low inflation. The drop in long-term rates reflects investors’ belief that inflation will remain low in the future. As long as this expectation holds true, the drop in long-term rates is expected to continue. However, if inflation were to rise unexpectedly, it could lead to a reversal in the trend of falling long-term rates. Therefore, the article advises caution to investors and emphasizes the importance of closely monitoring inflation readings to determine the future trajectory of long-term rates.



Original: Waving a Red Flag at Bond Bulls