Bid in bonds

After touching 5% again earlier today, the US 10year yield is currently rolling over. The move comes after two high profile 'bond kings' suggested it's the right time to buy bonds. This has created a yields down, stocks up scenario. Which means 'risk on': why? Because stocks like the thought of a lower interest rate.

Where it get complicated is that the 'bond kings' are suggesting a recession is imminent, which would mean: yields down, stocks down= 'risk off'. sat here today, I'm still sceptical of an imminent recession and my preferred trade of choice is still a 'risk on' trade (preferably short JPY) but today's comments do add a bit of spice to this week's US GDP number and, as ever, I must be prepared to change my opinion according to the evidence.