The bond market is bigger then the FED and traders would not want to lock away money for 10 years at 3.4% if they believe inflation is coming. If the economy were to recover the bond market will push up rates but if we are still stuck in a deflationary environment, then rates could even head lower. Seems to me deflation and inflation are still being debated.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.