Bonds had a big day yesterday as global yields fell. The Bank of England had a buy program yesterday, and bond holders did not offer enough bonds to meet the total. UK bond holders know this program is ongoing and yields are still positive in the UK, so why sell now? Without buying what it needed, the Bank of England still got the effect it wanted falling yields.

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The U.S. market, the world’s biggest bond market, rallied on the news. This shows how bond traders around the globe have shackled themselves together. They will all sink or swim together.

Bonds are now officially one big commodity. They are no longer instruments of safety, income, and reflections of the individual country’s economics. The world of bonds belongs to traders.

Read more about commodity bubbles and the current bond bubble.

Dwight Johnston is the chief economist of the California and Nevada Credit Union Leagues and president of Dwight Johnston Economics. He is the author of a popular commentary site and is a frequent speaker at credit union board planning sessions and industry conferences.