Another Challenge for Bonds?

It should be pretty clear that I’m bearish on the bond market. The massive budget deficits and debts we’re racking up should hammer Treasury prices. So should the steadily growing concern about the credit quality of sovereign debts. In fact, Moody’s Investors Service just weighed in again on that front. It warned that both the U.S. and the U.K. are “substantially” closer to losing their AAA debt ratings. A key reason? Debt servicing costs — ongoing interest and principal payments — are surging! By 2013, the U.S. will have…