On: Global Markets, Initially Shaken, Edge Higher Afte...

[illumin8]

This is actually much more indicative of the economic direction the market thinks we will be headed in. Hint: it's not good.

The bond market is extraordinarily efficient at pricing risk, and right now, they're beginning to price a significant risk of a long-term US default.

[b_emery → illumin8]

So buyers of these things think interest rates will be lower in the future (eg due to poor economy and further stimulus perhaps?)

[shoover → b_emery]

Yes, or at least as insurance in case interest do go lower.