PRESS ROOM
Steady rise in treasury yields as economic gloom is lifted
Thursday 10th December '20
Vaccine news has helped lift market sentiment and raised hopes for normalcy and economic growth in 2021. Treasury yields, nonetheless, are only making a steady ascent as monetary policy is likely to remain accommodative from the US Federal Reserve even as inflation rises in the coming year. The US breakeven inflation curve (the curve that represents the difference between nominal and real yields at each maturity) has practically returned to where it was at the start of the year after making a parallel shift downwards in the first half of the year. This signifies that inflation expectations are on the rise.