America’s bond market is headed where it should—with yields that can balance investment with saving
· livemint.com
Today’s hardening rates in the US are not unusual. The debt market is reaching for an equilibrium that an easy-money policy had held off for so long that people forgot what a balanced market looks like. This correction is something to cheer, not fear.
It happened again in May when the two-year rate broke higher than the federal funds rate, signalling that the Fed would have to raise its benchmark rate to tamp...