BILS - How Fast Will The 10-Year Treasury Yield Get To 2%?

• The bond market is pushing long rates up for the Fed while its balance sheet is growing at $120 billion per month.
• Because the Fed does not want to do any tightening, even though it expects to see an uptick in inflation because of the pending reopening of the economy, I think the present rise in Treasury yields is welcomed by the Fed.
• The question is how high inflation will go and if real interest rates (after inflation) will decline further. I do not believe real interest rates will rise significantly from here, and they are likely to remain negative for some time, likely kept there by the Federal Reserve.

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