The quiet bear market in bonds

 

Mark-Wahlberg-Shock-and-Confused-Look

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.