Re-enter risk premia on what should be 'risk free' bonds.
The renewed corporate profits upswing riffs off this relatively robust nominal growth picture too - as do still benign corporate debt premia.
However, keeping a lid on 5% nominal GDP may well be what's irking bonds as much as anything.
While turning 10-year averages takes some time, nominal GDP growth according to a real time model from the Atlanta Fed is closer to 8% right now.
CBO deficit projections to 2030US nominal GDP growth running at 8%?
Persons:
York Fed's, Ajay Rajadhyaksha, today's, Treasuries, Fitch, Andrew Heavens
Organizations:
Treasury, Federal, Fed, The, Barclays, Societe Generale's, Atlanta Fed, Moody's, U.S . AAA, Reuters, Thomson
Locations:
U.S, Washington, York, 35bp, 150bp, Treasuries, China, Europe