BONDS DECLINING FOR RIGHT REASON
Increasing inflation expectations are driving the recent bond selloff.
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…