Excerpt from Barron’s quoting DataTrek co-founder Nick Colas:
….”The current move has a lot more going for it: Fed bond purchase tapering is coming,” wrote Nicholas Colas, a DataTrek co-founder. Colas sees the yield hitting 1.75% soon…
…That makes sense. Not only was that the yield’s 2021 high, but it also brings the real yield—the nominal yield minus the long-term expected inflation rate—closer to positive. Currently, 10-year debt yields less than the rate of expected inflation, a fairly rare occurrence historically”….
Read the full article here on Barron’s!