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Longer Dated Treasuries Real Yields Touch Another Record Low

Published 09/16/2012, 02:27 AM
Updated 07/09/2023, 06:31 AM

Markets continue to behave as expected. Commodities are rallying while the dollar weakens.
CRB vs DXY
Inflation expectations continue to rise and longer dated treasuries are selling off, with the treasury curve steepening. However the longer dated treasuries have touched the lowest real yield level on record because the rising yield is not keeping up with the rising inflation expectations. Those holding US government debt are now expected to be losing nearly a percent per year when inflation is taken into account. It's difficult to comprehend how a money manager (including institutional investors) with any sort of a fiduciary responsibility be long treasuries at this point. Yet many still are.
Real rate 10y

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