Are Bonds the next bubble?

Interest rates have been extremely low for a good 5+ years now.  And we know its because of the Fed keeping the discount rate at zero and pumping free money into the sytem.  But nothing goes on forever and I have to wonder is the bond market the next bubble.  Look at all the other bubbles on this chart, while bonds have just been moving upward over the last 30+ years.  Will we see 1% 30 year mortgages?  I really doubt it but there are 2.5% 15 year mortgages now.

Are bonds the next bubble?

Author: Geoff

Quick rundown: Grew up in Lombard, Illinois, went to Arizona State University, worked as a CPA with Arthur Andersen & Co, then Laventhal and Horwath, then Rolling Stones, then Heron International, then Goodby Berlin and Silverstein in San Francisco. Moved to the foothills in 1990 and traded futures and designed websites. Married to Kate Stewart, now living in Colfax, CA. We have six grandchildren. I enjoy camping in our RV, hiking, kayaking, fishing, droning and cross country skiing Also conga drumming, photography and dogs.

One thought on “Are Bonds the next bubble?”

  1. Only as long as the Fed remans in its MO. If and when it stops pumping money into the system, we may see
    a different pattern. But hopefully, it won’t affect the bond market too much to bubble.

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