Investors are now tasked with trying to understand where bond yields go next, and what the drivers of those yields would be.
Forget about the technical charts, he says — they are not driving the bond market right now.
While Fed policy has consequences for the bond market, investors drive the yield, Johnson said.
That means trying to predict where bond yields will settle will be very hard.
But fear in the stock market could translate to greed in the bond market as investors flee to safety.
Persons:
Paul Ciana, Gordon Johnson, —, Johnson, Ed Yardeni, Kevin Zhao, Liz Truss, Ray Dalio, Fitch, Eric Leve, Michael Gayed, there's, Russell, Leve, hasn't
Organizations:
Federal Reserve, Investors, Bank of America, GLJ Research, UBS Asset Management, CNBC, Greenwich Economic, Tidal Financial, P Bank ETF, BlackRock
Locations:
Bridgewater, Greenwich