Deutsche Bank analysts find an even split on whether bonds are rallying on fundamental (fear) or technical (trading) factors. JPM is more decisive.
Arguing that debt ratios were much lower in the 1970s than they are now, DoctorDoom says the upcoming crisis will be much worse if shocks emerge.
“It’s the new normal,” he says. “I think we’re going to have to adapt to a world in which financial markets are no longer dominated by professionals."
Sudden demand for bonds signals exhausted investor sentiment as the world struggles to find post-pandemic normalcy. The next few weeks may get bumpy.