If the bond bubble pops big problems will occur. Many people seem to have forgotten after their nearly four-decade run that bonds have a very ugly side that can yield great pain. The yield curve inverted last week moving many investors to start the countdown to the next recession and causing bond yields to fall as more money shifted in their direction seeking shelter from what investors feel may be a coming storm.
Today's lower yields may be part of a greater conundrum created by the reality of too much freshly printed money floating around and people needing someplace to stash it. The article below delves into why interest rates may unexpectedly rise.