The Federal Reserve’s aggressive policy has resulted in a notable turnaround in 10-year real yields.
(Photo: Bloomberg)
Frankfurt The real yield on the 10-year US Treasury bond rose just above zero on Wednesday morning for the first time since the first quarter of 2020. As the day progressed, she slipped slightly again.
A real ten-year US yield of zero means that according to current expectations, investors can invest in the world’s most important segment of the bond market without suffering a real loss, i.e. after deducting the expected inflation. For German bonds, on the other hand, the yield is still well into the red. The relevant monetary policy is decisive.
Higher real yields make bonds more attractive and non-revenue investments like gold and bitcoin tend to be less attractive. In the equities segment, they endanger highly valued stocks. Higher bond yields often attract money from large investors, which slows the rise again as yields move inversely to bond prices.
Read on now
Get access to this and every other article in the
Web and in our app free of charge for 4 weeks.
Continue
Read on now
Get access to this and every other article in the
Web and in our app free of charge for 4 weeks.
Continue