There Is No "Bond Bubble"

Long-term Treasury bond prices are about where they ought to be: they consist of a normal duration discount, plus a valuation term because they are a hedge against today's extra large risk of (some forms of) macroeconomic disaster, plus the standard expectations of future federal funds rate terms, plus a term for lowered long-term inflation expectations in the future.

Paul Krugman:

The Taylor Rule And The “Bond Bubble”: Here’s a thought for all those insisting that there’s a bond...