Bloomberg Businessweek

This Bond Market Could Get Uglier

Buying the dips has led to quick profits, because central banks stuck with ultralow rates. This time may be different

A little more than a week into the New Year, billionaire bond guru Bill Gross proclaimed the start of a bond bear market, after an extraordinary bullish run spanning more than three decades. Two weeks later, Ray Dalio, whose Bridgewater Associates is the world’s biggest hedge fund firm, piled on with a forecast of the worst bear market since the early 1980s.

As yields on U.S. Treasuries soared to levels unseen since 2014, Gross asked the question on many investors’ minds: Who would buy America’s debt right now? After all, the government deficit is soaring because of

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