Low level of long-term yields in the face of the steepest inflation in decades has been a major puzzle on Wall Street,

 ... since it defies the textbook expectation that investors would demand higher payouts in return.

Ten-year yields on inflation-linked bonds fell to an all-time low of minus 1.25% last month before rebounding to about minus 1%. 

Taken at face value, that shows investors expect 10-year yields --trading at 1.44% Monday -- to trail inflation by about 1% annually over the next decade. 

Bloomberg 13 December 2021

https://www.bloomberg.com/news/articles/2021-12-13/bond-traders-stare-at-worst-real-returns-since-paul-volcker-era


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