- Born of inflation mania and rampant speculation, the latest downturn in risk markets has been telegraphed by declining global inflation expectations (below since 1995) and falling Treasury yields since the end of March 2021.
- The US 10-year Treasury yield broke under 1.50% last month, down from 1.74% on March 31st. With a rapid move to 1.20% yesterday, our yield target of sub-1% remains probable as goods spending subsides from a COVID-fevered pitch.
- Canadian Treasury yields follow suit, with Canada’s 10-year yield closing at 1.147 yesterday from 1.417 last month and 1.67 on March 19th.
For further details see:
Treasury Yields Leading Risk Markets Lower