Why record low bond yields could keep heading lower as market fears ‘disaster scenario’
“‘The disaster scenario is if yields fall dramatically from here,’ said one strategist. ‘Hypothetically, if the trade situation intensifies, if maybe Hong Kong goes badly and Brexit seems like it results in a hard exit … then what you probably get is a massive rally again in Treasurys.’”
USAGOLD note: As yields are driven ever closer to and possibly through zero, no one is sure of the ramifications to the rest of the financial markets. “Been there, done that” does not apply as the United States has never been there, never done that. Vulnerabilities abound.