Sage Advice Quarterly Market Review 1Q2000

Notwithstanding the abrupt inversion of the yield curve over the past two weeks, we doubt the bear market that has gripped U.S. bonds for more than a year has quite run its course. To be sure, the emotional pendulum often swings wildly in the bond pits, and the frenzy that carried the long-bond yield to nearly 6 ¾% a few weeks ago was bound to run into some resistance at some point. But the nearly 75 basis point plunge in the 30-year bond, which is fast become an anachronism, is less than meets the eye, as it reflects primarily technical rather than fundamental forces.