We could be heading for a golden age – or a return to the 1970s
The cost to the US government of borrowing money for a decade came within sniffing distance of 3% yesterday.
The US ten-year Treasury yield is sitting at 2.96% as I write this morning, having got to 2.99% yesterday.
Does this really matter? After all, 3% is just another number.
On the one hand, you’d be right to think that. On the other, it’s not so much the number as the direction that’s significant.
Goldcore Gold Chart, 1971 – 1980 – Click to enlarge
What the end of the bond bull market implies
If the US ten-year Treasury yield does breach 3%, we’ll be at heady heights not seen since 2013.
The big issue here is that bonds have been in a bull