It is the most important chart in the world. When you watch TV, it’s about annual losses in the stock market, but there’s a lot more money in global bonds, and this year wasn’t just bad, it was the worst. , bonds vomited in 2022 to end a 0-year cycle of declining interest rates that began in the early 1980s. Where this chart goes in 2023 and beyond is the biggest driver of global markets. The high so far has been .33% and you could argue that % has been rejected, but it will definitely be retested. Below the curve, the 2-year yield has risen 370 basis points this year, the most since regular issuance of 2s in 1973. I’ve long called bonds the biggest bubble in the history of the world, and it’s bursting before our eyes For me, the surprise of 2022 is that the bond crash didn’t result in any contagion, other than a short-term problem with the UK pension product. But pain creeps in, and whether it’s housing, corporate balance sheet, private equity, banking or whatever, a storm is coming.