U.S. Bond Market Hedged and Unhedged

U.S. Bond Market Hedged and Unhedged Investors are frantically searching for yield, knowing that 25% of all bonds in the world trade at negative interest rates. Our world is aging with high levels of debt and low interest rates (maybe for a long time). Picture source: Fidelity Investments

Global Bond Market

Global Bond Market This chart shows the growing global “bond bubble.” Since 2000, the global bond market has tripled in size. Picture source: J.P. Morgan Asset Management

U.S. Bond Market

U.S. Bond Market Based on GDP and the forward curve, the U.S. 10-year seems quite expensive right now (more than 1 standard deviation). Picture source: Fidelity Investments

Seasonality Effect in the Bond Market

Seasonality Effect in the Bond Market This interesting chart shows the seasonality of 30-year Treasury bond. Picture source: Commodity Seasonality

Equity Market Driven by Bonds Not Profits

Equity Market Driven by Bonds Not Profits The chart shows a widening gap between cyclicals and bond proxies. It is clearly a cyclical bear market within a bull market, as during the dotcom bubble. Picture source: Societe Generale Asset Research

Total Negative Yielding Corporate Bonds Outstanding

Total Negative Yielding Corporate Bonds Outstanding Negative-yielding corporate debt passed $1 trillion in market value. Investors face significant risk should rates start to rise. Picture source: Bianco Research