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Strategies & Market Trends : Dividend investing for retirement

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Cogito Ergo Sum
To: Jacob Snyder who wrote (33691)7/7/2021 1:14:46 AM
From: Rarebird1 Recommendation  Read Replies (2) of 34328
 
The yield on the 10 year bond has been falling despite inflationary pressures and stronger economic growth. Wonder why? The Bond market agrees with the Fed assessment that inflationary pressures are transient. Transient is a funny term since just about everything human and human related is transient. But getting back to the point, yes, I do think bond yields will continue to fall as long as the bond market buys into the Fed's transient inflationary assessment. Plus, the bond market knows that the Fed won't be able to raise rates past 1.5% without causing a recession and massive stock market decline. My guess is that the Fed may have to stop raising rates at 1%-1.25% before major problems surface.

And I don't think the bond market is rallying due to the Delta variant. It was rallying before that came to the surface.
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