There is no logical reason for the bond market to be drastically bidding down yields in anticipation of an impending recession
The bond traders and speculators are not front-running recession:
They are front-running the Fed and the rest of the central banks based on their now three times repeated experience since the arrival of Greenspanian monetary central planning that central banks will flood the markets with liquidity and bond-buying in the event of a recession, thereby driving bond prices skyward and yields to rock bottom.
That is, the central banks drive bond prices sky high and speculators, who purchased these bonds on repo and other short-term practically zero-cost credits, laugh all the way to the bank.
They are front-running the Fed and the rest of the central banks based on their now three times repeated experience since the arrival of Greenspanian monetary central planning that central banks will flood the markets with liquidity and bond-buying in the event of a recession, thereby driving bond prices skyward and yields to rock bottom.
That is, the central banks drive bond prices sky high and speculators, who purchased these bonds on repo and other short-term practically zero-cost credits, laugh all the way to the bank.
Never before has the stupidity of a tiny group of PhDs and political apparatchiks domiciled in the central banks generated such unspeakable windfalls for so many speculators and gamblers.
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