Let's read some market tea leaves, shall we?

From Marketplace. I'm Sabri Beneshore in for David Brancaccio.

You know, sometimes markets speak to us with the voices of millions of investors voting with their dollars about how they think the future will go.

So let's take a moment to decode what they are telling us this morning

with Julia Coronado, founder and president of macro policy perspectives and a professor at UT Austin.

Good morning, Julia.

Good morning. So the bond market. It's telling us something, because bond yields have been

rising. Why are they rising? Well, we have seen some political attacks on the

independence of the Federal Reserve, and that is spooking markets. And in general, markets are

just looking at governments and thinking that they are a little bit riskier than they thought

and need to be charged more to borrow.

You know, I was talking with an investment strategist the other week, and he was saying it's not even just the independence of the Fed that's spooky markets. It's the looming budget deficits.

Absolutely. It's a combination of there really is no longer a framework for fiscal discipline,

fiscal discussions in the U.S. budgeting process. We're just looking at large and growing deficits

as far as the eye can see. That certainly is a concern. And then you have a federal reserve that may

not be able to do their job without

political interference as well as they have in the prior 30, 40 years. And that's also a

concern. So there's really no good news for the bond market right now. So moving on to another market,

which is the market for gold. The price of gold is up 32% this year.

It's more than $3,500 for an ounce.

Why would that be happening?

Well, same story.

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