“Bonds aren’t buying it.” You hear that sometimes, since the bonds markets have historically been considered substantially wiser and more forward-looking than equity markets, and there are instances when bonds are saying one thing and stocks the other. That’s going on now, with bonds weakening (which flies in the face of the narrative that interest rates will be dropping and thus propelling stocks higher). The net change since early December has been just about zero, which should scare stocks.

Here’s a longer-term view, this time of the /ZB. The story is the same: bonds are prone to more selling, which means higher rates, which means……………..watch out!

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