The bond market remains at risk of a correction as the economy continues to heat up in late 2013. A «bubble» typically implies a market condition that is ready to burst at anytime. We’ve all heard about the bond «bubble,» while the Treasuries look more expensive in particular. There isn’t anywhere for yields to go but up when the benchmark 10-year note pays out below 2% yield. The United States (U.S.) economy is starting to improve gradually, even though on the slow side. Rather than a bubble doing a quick deflate, one should visualize a block of ice melting down gradually. Even though growth is usually positive for stocks, for bondholders it is commonly seen as hazardous.
