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‘What If Yields Rose By 100bp?’ Questions Linger Around Bursting Of Bond Beta Bubble
What happens to the bubble in bond proxies and other crowded trades tethered to a "slow-flation" mac
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The question is which bond rates? If it is long rates and you get a steepener that would indicate faster growth. What about 100 bps in the short end and a flattener? Probably not good for any type of equities (fed policy mistake- overtightening)…..In any case the most likely relevant question revolves around credit spreads not necessarily the absolute level of rates- and this correlates with the rate of change in rates across the curve.