It might feel like the stock market is celebrating a victory after this weekend’s trade agreement with China, but if you’re watching the bond market, you’re seeing a very different story.
Long-term Treasury yields are still following the path that they set in April. Right now, yields on the 20-year Treasury are continuing higher as bond values move lower.
In April, long-term yields posted one of their sharpest weekly spikes in decades. The message was clear then that Wall Street’s smartest money is far from convinced that this rebound is built to last.
In fact, the bond market’s behavior suggests that something deeper is wrong—something the Fed may not be able to fix.
This post originally appeared at Money Morning.