In a thread below, WYDave said:


The two signs I'm going to be watching for:

1. HYG prices/yields.
2. LIBOR rates.

Remember, the bond market is the dog, the stock market is the tail on the dog, and the commodities market is the tongue on the dog. The stock and commodities markets can wag and slobber, but they don't determine where the dog goes; the dog determines where the tail and tongue go. Pay attention to the bond markets. So far, what I see in the bond markets doesn't worry me - yet. That said, the stock market is overdue for a 10% correction.



My question is: What sort of an increase in LIBOR and bond interest rates should I be looking for as a sign that troubled times are ahead? The link (if it works) should show a historical chart of LIBOR rates. We are well below Feb of 1989. What sort of an increase would be problematic?

http://www.macrotrends.net/1433/historical-libor-rates-chart