3 Factors Driving Higher Rates: Krugman

NYT’s Paul Krugman did a nice simple piece yesterday on the 3 themes/perceptions that tend to drive rates higher: growing debt, less Fed help, better economy. Below is a table showing the ultimate impacts of each on stocks, bonds, and the dollar. Unfortunately none of the scenarios are good for bonds, and rates rise when bond prices fall. But the good news is “macroeconomic optimism.”

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Quick read, well worth it…
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Reference:
Rate Stories (Paul Krugman, NYT)

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