Banks are preparing for further disinflation, not inflation US Treasuries to remain well bid amid COVID-19 resurgence Speculation on lower rates as long as US economy struggles to recover European Commission to undertake borrowing on the capital markets for first time Fed's strategy is to avoid inflation expectations slipping Central bankers don’t have policy tools against asset inflation If interest rates go down, bond prices go up Massive fiscal stimulus programs worldwide expected. Political chaos in Europe forces capital into US bonds.
BOND Bearish
Another stimulus, more than $2 trillion Joe Biden to push additional relief packages, implying higher government debt Rising interest rates to torpedo the bull market Billionaire hedge fund manager warns of 10% inflation The Fed chasing inflation, nominal GDP could rise big time Fed can control yield curve Central banks are nowhere close to raising rates Ratio of downgrades to upgrades in credit ratings of leveraged loans spikes to a record level Firsts overdue rents and loans A new normal in the US EM countries to sell US bonds in order to help their economy and currencies Central banks moving to zero rates Failed auctions: investors can't accept negative yields