Greenspan: the US bull market crumbling

The Bloomberg report, although the United States Federal Reserve (Fed) to keep interest rates unchanged again, causing some market participants predict, United States bond markets are likely to continue a period of long bull markets, but former United States Federal Reserve (Fed) Chairman Greenspan (Alan Greenspan) Thursday (22nd) to this warning, the US bull market are crumbling.

On in Fed Yu Wednesday (21st) announced maintained interest rate not variable zhihou, bonds King gross (Bill Gross) on in accept CNBC interview Shi said, from Fed will Hou of future interest rate intention bitmap (Dot Plot) view, future Fed of rose card speed slow, I'm afraid will makes beauty debt colonization interest rate curve became more flat, means with gross think, beauty debt price still will will continued higher.

Following figure by shows, 10 years period beauty debt colonization interest rate in June 2007 hit 5.024% of high zhihou will way lower, up near ten years of condition, 10 years period beauty debt price can be described as is way go cattle; and in Wednesday (21st) Fed again announced maintained interest rate not variable of effect zhixia, 10 years period beauty debt colonization interest rate Wednesday, and Thursday again appeared plunged (price rose), cumulative two a day 10 years period beauty debt colonization interest rate amounted to fell has 3.88% of more.

Ten-year Treasury yields monthly chart (October 2006-present)

Although the "bond King" gross believes that Fed raise interest rates too slowly will make the Treasury market continues to rise, but before the Fed, Greenspan on Thursday (22nd) retort said Treasury Bull bull market will not be able to continue, Greenspan pointed out that this expectation Treasuries on the market prices cannot drop frame of mind, is a fairly typical asset price speculation in the high-end. Greenspan said: "every time they're in a bull market, when always think this bull market never crashed.

Current market bad United States bond market Café, seems to be not only Greenspan alone.

Ray Dalio notes that at present there are more than 11 trillion dollars worth of bonds has been trading at negative yields level intercropping, United States Federal Reserve (Fed) and Japan's Central Bank (BOJ) simply cannot afford to market funds out of bonds, Ray Dalio to this respect, global central banks to stimulate the economy of means, are already stretched to the limit. Ray Dalio is considered, which is very close to the end of a cycle in the bond market, central banks to shoulder in the past, the ability to support the bond market has long been lost in the past, estimates of future global economic growth rate will be used by all levels than in the past, there was more low.