Bad news, bond bears.
If you’re still hoping/wishing/praying that U.S. Treasury yields fly north of 4% (like many process-less Old Wall pundits were predicting last summer) we wish you well.
It is unlikely investors will see these levels anytime soon, so long as global sovereign yields continue to sink.
Hedgeye CEO Keith McCullough and Senior Macro analyst Darius Dale weighed in on this subject in this clip from a recent edition of The Macro Show. The key takeaway is our non-consensus long bond call will likely continue to play out positively with German and Swiss yields languishing in negative territory and British gilts sinking as well.
“Where do you think [U.S. yields] are going if all of those are down here and there’s no case to be made for a huge global acceleration?” McCullough asks.
“When growth and inflation are slowing at the same time, that’s Quad 4. Quad 4 is the best thing you can have for sovereign bonds.”
Watch the full clip above for more.