But for now, we are sorting out the human impact, the economic impact, and the credit impact. That combination spooked investors, and bond yields sprang higher, led by the front end of the yield curve. Whether we look at housing prices, commodity prices, inputs to commodity prices, energy, or various surveys, they all point to an economy slowing down. Longer-term bond yields dropped during the second half of 2000, and the front end went back to a positive slope. Muni bonds remain particularly attractive and long bonds even more so.

Source: The Herald October 24, 2022 23:19 UTC