And All of a Sudden I Am More Optimistic Than the Bond Market

Includes: DTYS, TLH
by: Brad DeLong

US Generic Govt 10 Year Yield  USGG10YR IND Index Performance  Bloomberg

With an 0.5% pure term premium in the expectational-term-structure equation, it now looks as though Ms Market expects the Federal Reserve to keep Fed Funds rates at zero until the end of 2013.

2006 to 2013 is not quite a lost decade, but it is damned close.