Inflation Watch: The Most Important Bond Yield In The World Is RISING

December 20, 2017

The bond market is talking, but no one is listening.

As I explain in my bestselling book The Everything Bubble: the Endgame For Central Bank Policy, the yield on the 10-Year US Treasury bond is the single most important interest rate in the financial system.

This is the “risk free” rate of return… the rate against which ALL risk is measured (stocks, commodities, corporate bonds, mortgages, etc).

With that in mind, take a look at the following chart.

As you can see, the yield on the 10-Year Treasury is breaking out to the upside, having broken above its 20-year trendline.

Why does this matter?

Because this chart is telling us, in no uncertain terms, that inflation is coming.

You see, bond yields track inflation (as well as economic growth). So as inflation rises, bond yields will also rise.

When bond yields rise, bond prices fall.

When bond prices fall, the Bond Bubble bursts.

When the Bond Bubble bursts, the EVERYTHING BUBBLE follows.

The time to prepare for this is NOW before the carnage hits.

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Graham Summers is Chief Market Strategist for Phoenix Capital Research, an independent investment research firm based in the Washington DC-metro area with clients in 56 countries around the world.

Graham’s clients include over 20,000 retail investors as well as strategists at some of the largest financial institutions in the world (Morgan Stanley, Merrill Lynch, Royal Bank of Scotland, UBS, and Raymond James to name a few). His views on business and investing has been featured in RollingStone magazine, The New York Post, CNN Money, Crain’s New York Business, the National Review, Thomson Reuters, the Glenn Beck Show and more.

Gold's special properties mean that it has a greater variety of uses than almost any metal.

Gold Eagle twitter                Like Gold Eagle on Facebook