The quiet bear market in bonds



Student of Bond Market

Students of the bond market are familiar with the “expectations theory,” which says that forward rates are essentially the sum short-term spot rates over some period of time. With the Fed intending to hike short-term rates more sequentially, longer maturity spot rates may match the level of forward rates, resulting in zero or even negative expected bond returns

I am still mini jet lagged from the minor time zone change after ski, so I just woke up, and I may be missing something, but this makes my head hurt, Bloomberg guy.

He is discussing the “quiet bear market in bonds”, by the way.  I will leave the hard math to smarter guys, but there seems to be something wrong with the passage above.