Welcome to Animal Spirits, a show about markets, life, and investing.

Join Michael Batnick and Ben Carlson as they talk about what they're reading, writing, and watching.

Michael Batnick and Ben Carlson worked for Ritholz Wealth Management.

All opinions expressed by Michael and Ben or any podcast guests are solely their own opinions

and do not reflect the opinion of Ritholz wealth management.

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for informational purposes only and should not be relied upon for

investment decisions.

Clients of Ritholz wealth management may maintain positions in the securities

discussed in this podcast. Welcome to Animal Spirits with Michael and Ben.

So last week the 10-year Treasury yield

hit an all-time closing low of 52 basis points.

I think it actually got a little lower than that during the height of the crisis when it first got started, but that was the lowest closing ever.

And one of the rules of thumb that people tend to think about the markets is that the bond market is always smarter than the

stock market. But it seems like most people who haven't just said we're never

getting inflation again. A lot of people kind of tend to think because of all the

fiscal stimulus we've gotten that we're going to get some inflation.

Especially if there's a vaccine, we could get a surge of inflation and everyone thinks this is a foregone conclusion that rates would rise,

but the bond market right now obviously doesn't seem to care.

I mean it should be blatantly obvious if we're going to get a vaccine in six, nine, 12 months,

whenever it is and we're going to get all this inflation because of the spending that the bond

market could see this pretty easily. So why is this happening? Is the Fed really that

...