All the politicians have had their say about Nuklorea, the shootings died down. So, yields are up as investors leave safer bonds and go to equities. Still not sure I have this right.
Why is the bond market safer? More aggregated, hence more resilient. In hydraulic mode, bonds have lower bandpass, in QM mode, bonds have greater economies of scale, higher transaction sizes at lower transaction rates. In measure theory, bonds measure longer term trends which should be more stable.
Each of those segments on the dynamic yield curve is a Hick's partial equilibrium. The sequence of Hicks's equilibriums along the curve should be the best, constant precision match to the hydraulic model.
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