Stocks fell sharply in Thursday’s New York session after bond “real,” or inflation-protected component of Treasury yields rose sharply.
- David P. Goldman
- Asia Times
The inflation component of bond yields actually shrank a bit.
The futures market for the US central bank’s overnight (federal funds) rate shows that investors expect that the Federal Reserve won’t raise interest rates until sometime in 2022.
But that was enough to boost the yield on 5-year inflation-indexed Treasury notes by about 0.2% (20 basis points) and…