Double dip?

News. Aug. 31 (Bloomberg) -- The bond market isn’t buying all the optimism over the end of the global recession.

While the International Monetary Fund said last week the economic recovery will be faster than it forecast in July, investors pushed yields on government debt to the lowest level since April, according to the Merrill Lynch & Co. Global Sovereign Broad Market Plus Index. The gauge, which tracks $15.4 trillion of bonds worldwide, gained 0.73 percent this month, the most since 1.02 percent in March.

My view. Watch closely commodities and bond yields. A double dip is most likely if bond yields and commodities start heading south. Is the large deficit orchestrated by Washington going to crash the economy? I would not be surprised. Read the previous post.

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