This is not a sign of a healthy economy as money flows into “safe” government bonds. Gold is popping again this morning. With all the new money central banks have created since the Great Recession of 2007-2009, the financial system has had to absorb trillions of dollars of additional cash, which propelled asset prices highers for the past seven years. In other words, we are in another bubble.
“U.S. sovereign bond prices were higher Tuesday, after being closed Monday for the July 4 holiday, resuming a strong “safe-haven” bid.”