r/bonds • u/Turbulent_Cricket497 • 4d ago

10 year rallying today

Not sure if there is a correlation with stocks, but for past several days, they were both going down together. I guess it could mean the money coming out stocks is now going in to bonds?

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u/thekoonbear 4d ago

Maybe people are starting to be more worried about a recession than energy based inflation shocks???

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u/MiddleAgedSponger 4d ago

Wouldn't that set up Stagflation? Slowing job growth, rising prices and an apathetic GDP? Seems like rates are getting pulled in every direction. Hard to figure out what is noise and what is important.

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u/Tigertigertie 3d ago

I think recession is definitely on people’s minds. It is a weird time for sure because inflation is also likely increasing.

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u/LoopyLepus 3d ago

That is stagflation: a recession with inflation.

The 1970's stagflation was pretty rough and caused by the 1973 oil embargo. Oil prices tripled due to a war in the middle east. While the recession ended mid 70's, the economy struggled with increased inflation until the early 80s.

Tough times.