The bond market is anticipating a change in Fed policy

Via the First Trust Monday Morning Outlook.

While it certainly hasn’t made the headlines that it should have, the bond market has been kicked in the teeth.    After bottoming at  1.61%  on May 1, the yield on the 10-year Treasury Note hit 2.84% on Friday,  its  highest level in two years –  the worst bear market move in bonds since  the end of the 2008-09 financial panic.

This may well be the move in the bond market that we have been anticipating for some time.  It was utterly predictable and inevitable.   Having anticipated this move and positioned our portfolios appropriately, we will have to hang on for the ride as we have other market transitions.

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