Real Treasury yields plumb the depths

INVESTORS RUSHGDP to American Treasuries when they get anxious. In spring 2020, as the severity of the pandemic became clear, yields on ten-year Treasuries sank. That comprised a fall in both expected inflation and real yields, as investors became gloomy about both price and growth. In recent weeks yields have drifted down again, reflecting worries about the strength of the economic recovery. On July 26th the real yield fell to a record low. Investors’ expectations of inflation, though, have held up.