‘Train Wreck’ Economy or Red-Hot Inflation Is Big New Bond Call
- Treasury investors divided on growth-versus-inflation debate
- LongTail likes two-year debt, AlphaSimplex quant shorts bonds
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A wild year on Wall Street has traders fretting one of two extreme scenarios will engulf the $23 trillion Treasury market ahead: Either a fresh bond selloff thanks to red-hot inflation -- or a sustained rally on mounting recession risk that sends yields back toward historic lows.
Market participants are butting heads over what big move will come next.