So far this year, 10-year Treasury yields (^TNX) have fallen more than 15%, standing at 2.54% Tuesday morning. It's been a surprise, as everyone predicted interest rates would rise this year. So is this a reflection of global economic concerns -- a reason for people to fret? Not according to Citi Chief Equity Strategist Tobias Levkovich.
"We think [the reason for falling yields is] pretty technical," he tells us in the accompanying video. "Look at jobs, auto sales, planned capital expenditures -- none of that is indicative of something ominous in the economic data."
So what explains it? Levkovich believes the justification for the bond rally has been driven by technical factors like people covering short positions, which he's heard that banks and a number of institutions have had to do.
The bottom line in his view is that "people have been reading a little too much into it."
Check out the video to hear more and see what Levkovich thinks about stocks and why although he sees the S&P 500 (^GSPC) going to 1975 this year, the data currently "suggests we could get a little bit bumpy here."
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