Markets rise, Greenspan warns of bond bubble

Markets rose on Tuesday.

The S&P 500 rose 0.2 percent, the STOXX Europe 600 rose 0.6 percent and the Nikkei 225 rose 0.3 percent.

US Treasuries rose, with the yield on the 10-year note falling 3.9 basis points to 2.253 percent.

While some analysts attributed the low bond yields to low inflation, former Federal Reserve chairman Alan Greenspan warned that bonds are in a bubble.

“By any measure, real long-term interest rates are much too low and therefore unsustainable,” said Greenspan. “When they move higher they are likely to move reasonably fast. We are experiencing a bubble, not in stock prices but in bond prices. This is not discounted in the marketplace.”