US ‘real yields’ to brink of positive territory
So-called 10-year real Treasury yields have soared more than 1 percentage point since early March, hitting a high of minus 0.04 per cent on Tuesday, in a sign bond payouts are coming close to exceeding medium-term inflation expectations.
The jump in real yields has been triggered by the Federal Reserve’s bid to slow intense price growth by aggressively tightening monetary policy.
The move is already eroding one of the pillars that has underpinned a powerful rally in stocks and riskier corporate bonds from the depths of the coronavirus crisis two years ago.
FT 19 April 2022
https://www.ft.com/content/300de65b-e3de-463b-975f-9d25f1c28783
The yield on so-called 10-year TIPS rose
Positive U.S. Real Yields Will Rip Up Global Markets Playbook
Rising real rates, a crucial barometer of true interest costs for corporations, have come as traders raise their aggressive bets on policy tightening from the Federal Reserve and central banks around the world to combat still-hot inflation levels
“Real yields rising signal we’re progressing back to normality as central banks withdraw stimulus,” said Stephen Miller
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