Billionaire vulture investor Wilbur Ross told CNBC:
I think the greatest bubble that is about to burst is the 10-year and longer Treasury, because the idea that inflation is gone forever and for all time, and therefore these artificially low rates can last, is silly.There is absolutely no reason to own long-term Treasury securities. Interest rates are heading up across the yield curve short-term rates and long-term rates.
When CNBC notices the problem, you know the crisis stage is imminent. Writes CNBC:
The long run in government debt growth has been boosted by accommodative policies at the Federal Reserve , which has held its targeted funds rate near zero since the explosion of the financial crisis, keeping government yields low, as well.
However, the 10-year in particular has begun to creep higher lately, most recently trading at 2.36 percent, its highest level since October.
That has caused some investors to wonder whether inflation pressures driven by historically loose Fed policy finally will come home to hammer fixed-income markets.