Posted 12/28/2023, 5:40:00 PM
Bond Market Volatility Surges, Mimicking Meme Stocks as Yields Swing Wildly Despite Fed Rate Outlook
- The bond market is behaving like a "meme stock", reacting sharply to data and developments
- Treasury yields have seen big day-to-day swings recently
- Stocks are taking cues from the bond market's volatility
- There's disagreement between market expectations for rate cuts in 2023 and the Fed's own projections
- It's uncertain whether the Fed will actually cut rates as much as markets expect given their data dependence