It seems like the long bond market is coming around to the reality that interest rates WILL rise at some point and that point is getting closer every day now. Economic numbers out this morning show an U.S. economy that is picking up steam.
It has been a 30 plus year bond bull market. At some point the idea will start to spread that it may be time to shift from long bonds to a shorter duration bond, at the least. And given the length of time that bonds have been in an uptrend there are surely some lopsided positions out there in the aggregate.
It does seem that the bond market may be setting up for a rout of sorts...
Although I don't know what the reasonable alternative might be.
Can money just vanish? I guess we know the answer to that. The financial markets are THE saving vehicle in these times and there is no real backing to any of it. Except the liquidity in markets that set prices. And there are rumors of a lack of liquidity in the bond markets.
The bond FUNDs may lead the way facilitated by the interconnectedness of modern "investors". Are there any real buyers left?