An interesting article in Bloomberg noted that the recovery in this year’s Treasury market has been stronger than the rally predicted by every economist they queried in a recent survey.
In mid-August, Bloomberg contacted 66 economists for their Sept. 30 forecasts on the 10-year yield for Treasury bonds. The 10-year yield closed on Aug. 28 at 2.32 percent. That was lower than the yield predicted by every single one of the economists surveyed.
While that observation is stunning, the balance of the article is even more puzzling. The authors quoted a bond manager and a money manager giving — you guessed it — their views on whether the bond market has more room to rally. The money manager opined that Treasuries “look expensive.”
Read the rest of the article at The Huffington Post.