Jamie Dimon is siding with the sovereign bonds bears.
“I do think that the prices of bonds are high.” “I’m not going to call it a bubble, but I wouldn’t personally be buying 10-year #sovereign debt anywhere around the world.”
The remarks echo a chorus of bears in the Treasury market who say an expanding economy will boost yields as the Federal Reserve increases its benchmark rate. Dimon didn’t go as far as former Fed Chairman Alan Greenspan. Last month Greenspan said that the bond market is experiencing an actual bubble. He warned that real long-term interest rates are too low to be sustainable. Signs of economic expansion in Europe are also feeding concern fixed-income prices in the region could be headed for a fall.