You'd think that policymakers and economists would be happy with the latest US GDP print. It was, after all, quite a bit above expectations at 3.9 per cent, compared with 3.3 per cent in the September quarter.
Yet once again, much of the commentary produced suggests that the result was a ‘mixed bag'. Indeed, following the release of the numbers, the US 10-year bond yield actually fell by around 8 basis points to 2.25 per cent (2.24 per cent at present). This is the lowest yield in about a month. And despite the fact that the Fed has ceased QE III and the US economy has accelerated sharply this year, bond yields have fallen by around 75 basis points since the beginning of 2014. Remarkable.