Talk is cheap — Buying bonds is not

You can tell that the US establishment is desperate when it unites to talk government bond yields down. Higher yields lead to a slump, contracting bank credit, and yet higher yields.

The chart of the 10-year Treasury note yield plainly indicates that having broken above resistance at 5% which has held for three years, it is perfectly natural for it to tick back to find support at or close to that level. But the larger context should be kept in mind: