BONDS DECLINING FOR RIGHT REASON
Increasing inflation expectations are driving the recent bond selloff.
![](https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F513788c6-fc04-4ea2-8fd7-edb6d8bf365b_1000x667.png)
I find it funny how there are increasing calls for yield-curve-control due to the “backup” in US government yields.
Let’s step back and think about the last couple of decades of bond market action. The US 10-year Treasury yield has fallen from 6% to 0.25% during that time. According to pundits, the recent rebound in 10-year yields to 0.82%, necessitate…