by Bond merchants have been as soon as deemed so highly effective and all-knowing that Tom Wolfe described them as the “Masters of the Universe” in his traditional 1987 novel “The Bonfire of the Vanities” that used Wall Street as its backdrop. These days, they give the impression of being extra like deer caught in the headlights.
Those who deal in the fixed-income market are as confused as anybody else over what lies forward for the economic system. That will be seen in JPMorgan Chase & Co.’sweekly survey of bond market members launched on Wednesday. It confirmed the share of respondents who say they’re “impartial” quite than “lengthy” or “brief” on US Treasury securities — the world benchmarks — has surged to 80%, the most since late 2011 throughout the peak of the European sovereign debt disaster and effectively above the common of 59% since then. Just 9% count on Treasuries to rally and 11% count on them to say no. In brief, bond merchants don’t have any conviction.
