Title: Is The Bond Market In A Bubble? | Seeking Alpha
Headings: Is The Bond Market In A Bubble?
Is The Bond Market In A Bubble?
Summary
Bond Bubble? What Bond Bubble?
The Forces of Deflation are Real
Is There Any Value in Bonds at These Levels?
Why I Believe Everyone Should Own Some Bonds
EB Investor

Content: Global risks continue to increase, and US Treasury STRIPS are cheap when compared to their global counterparts. Bond Bubble? What Bond Bubble? I have been bullish on the long-term US Treasury bond for some time, and every time I articulate my thesis that the 10-year could hit 1% and the 30-year 2%, the bond bears step in to tell me how crazy that is. Yet the market has continued to prove myself, and those who believe in the bull market in bonds, correct over and over again. The facts of economic history and the truth of the current economic data simply do not support their contention that bonds are in a bubble, or that said bubble will burst any time soon. The first objection I often hear is that there is a bubble in the bond market. To counter their objection, one only need review the history of bonds with the 10-year yield (pictured below), which indicates that the real bubble was in the 1980s, when it saw rates above 15%. The reality is that rates can stay low for a very long period of time, and likely will continue to ratchet lower towards 1% on the 10-year and 2% on the 30-year as the entire yield curve continues to flatten with global deflationary forces rising. The Forces of Deflation are Real
Deflationary pressures are picking up steam globally.