The Bond Bubble Is Deflating

The bond market had its worse week since 2013 and it looks like a lot more carnage can come if we really break down. Yields are still low. The yield on the 10-Year Treasuries is just above 2.10 percent and the yield on the 30-Year is now above 2.90 percent. These are still low yields but they are not nearly as low as they were a while back. But what is more important is the momentum in this move and how much higher interest rates would potentially go as this bond bubble deflates.

Stock Market, Gold & Bonds

The Dow Jones Industrials Average (DJIA) was up almost 1,000 points last week. The gold market was down 70 dollars on the week, a percentage decline of 7 percent or so. Silver was also down about 5 percent. Gold and silver stocks were down close to 20 percent.

The stock market had its best week since 2011 and the bond market had its worse week since 2013 and it looks like a lot more carnage can come if we really start to break down.