The Collapse In Bond Yields

Chart is from Dr. Ed Yardeni's blog and it is a great illustration of the collapse in global bond yields since the onset of the Great Recession.  I always read Dr/ Yardmen's work and think you should too.  Here's his thoughts on what these yields might be signaling, then go read the whole article at the link below.

"I’m not convinced that the bond market is signaling a recession in the US or even in the global economy. It is confirming that overseas central banks will continue to pursue their ultra-easy monetary policies, and that the Fed will postpone additional rate hikes. Undoubtedly, the negative official interest rates of the ECB and BOJ are major contributors to the race to zero and below in bond yields. So is the ECB’s corporate bond-buying program, which started in June, and may be hard to implement given that the reach-for-yield mania is back with a vengeance, with everyone swooping up bonds and putting them away. The problem is that the flattening of the yield curve around zero percent is bad news for banks and other financial intermediaries. "

Link:  Yardeni:  "Globalization of Bonds"