Daily Archives: Feb 9, 2021 at 07:50 am EST

The Great Divergence: Nominal vs. Real Treasury Yields

The Treasury market’s implied inflation forecast continues to rise, but the source of this reflationary trend is born of a growing divergence between nominal and real (inflation-adjusted) Treasury yields. Explaining the divergence and pondering the implications can take several paths. But no matter your preference, all roads begin with monitoring the data that highlights this expanding gap.

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Macro Briefing: 9 February 2021

* Dems propose additional $1400 payment for $1.9 trillion relief package
* Senate leadership announces plan for today’s Trump impeachment trial
* US carrier groups conduct joint exercises South China Sea
* Hacker attempts to poison water supply in Florida city
* US average junk bond yield falls below 4% for the first time
* Italian government bond yields fall to record low
* Bitcoin rises to record high after Tesla discloses $1.5 billion purchase
* US crude oil benchmark rises for 6th day to nearly $58–a 1yr high: