Rotten Rates

While stock markets have largely recovered from the recent Brexit vote, trouble lurks as witnessed by the continued plumbing of new depths by interest rates. 10-year US Treasuries recently hit a historic low of 1.36%, equivalent duration German bonds yield -0.06%, and the entire stock of Swiss government bonds, including those with 50-year maturities, have all turned negative. Markets are saying weak global demand and deflationary tendencies will persist.