However, the overshadowing news is that government intervention may have played a role. Not so much in purchases of bonds, but mortgage securities. Many fixed income securities are close substitutes (this is one reason why the Fed can generally not control the markets long-term, tens of trillions of purchases would be required to fight market forces longer term); when the Federal Reserve buys mortgage securities, the yield of Treasury Bonds is expected to come down.

Similarly, a story is making it to mainstream media headlines how benchmark fixed indices are being distorted by government action.

All said, these are further signs of eroding trust in the Fed and their ability to keep interest rates low.

Axel