Bonds are way oversold at this point, market watcher says. Here’s what that means
Bond yields hit the accelerator again this week with the 10-year Treasury hitting its highest levels since mid-2011. Bond prices, which move inversely to yields, are now looking oversold, said Larry McDonald, editor of the Bear Traps Report. The U.S. 10-year yield is much higher than in Japan and Germany, but a global shortage of dollars has increased the cost of hedging these bonds.