Bonds and stocks are at loggerheads again, with one side indicating caution on growth and the other brimming with optimism.
Judging by comments Treasury Secretary Steven Mnuchin made Thursday morning on CNBC, it looks like bonds could have it right — that growth is coming, but probably not as quickly as the stock market would like to think.
Mnuchin's boss, President Donald Trump, has been promising a pro-growth agenda fueled by tax cuts, less regulation and increased domestic government spending. From the time he was elected in November, the stock market took off, while government bond yields jumped as prices fell
But since then, stocks have continued to rise while yields actually have dipped a bit as fixed income investors have become less enthusiastic about how fast growth will happen.