This week, I do believe that a little levity is in order. So, without further ado:

A large passenger train was crossing the country. After they had gone some distance, one of the two engines broke down.

“No problem,” the engineer thought and carried on at half power. Farther on down the line, the other engine broke down and the train came to a standstill.

The engineer decided he should inform the passengers about why the train had stopped, and made the following announcement, “Ladies and gentlemen, I have some good news and some bad news. The bad news is that both engines have failed, and we will be stuck here for some time. The good news is that you’re not in an airplane.”

As you can likely guess, the bond market is the train and the engines driving the low rates have definitely broken down.

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Please note that after this article was posted, employment data was released and the results greatly disappointed. Rates, however, have not reacted favorably as we would generally expect.