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Stock markets are known for often going too far. So can bond markets, although they tend to go mad a little less often, and to do so in a way that’s far less visible to the general public. And as bond markets are generally thought to be more sober, the extraordinary rally in recent weeks has generally been taken as a sign that a recession is at hand. That, after all, is what $15 trillion in negative-yielding bonds around the world, and a virtual all-time low in the 30-year U.S. Treasury bond, would imply. But it is at least possible that this is the moment when the three-decade-long bull market in bonds has at last reached an untenable extreme, ready to snap back. This might, in other words, be the bond market equivalent of early 2000 and the dot-com bubble in the stock market.
... there are plentiful signs that markets may have reached a point of revulsion, or untenable extremes. Or, in Monty Python terms, the moment the brigadier with the big mustache appears on the screen and says: “Stop that, it’s all got frightfully silly.”