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
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