Can someone explain why bond yields are going up? Normally you'd expect people to be investing in safer assets (eg. bonds) during times of crises, especially with the Fed slashing interest rates and embarking on QE.
There's also been news this morning that the government will bail out commercial paper and corporate bonds, and that this has caused investors to move from treasuries to corporates.
It strikes me that both explanations may be true.
And I guess another possibility is that the US is already running a large deficit, and that is probably going to get much worse shortly. So maybe some are losing faith in the safety of treasuries?
I certainly would like to hear from others on this.