Bonds are looking their best in 20 years

One chapter in the upcoming great bond yield mean reversion……

“Real” interest rates are at same levels seen 20 years ago, as represented by the U.S. 10 year bond minus 10 year inflation break-even rate.

They are also at the same levels seen in 2007 and 2008.

It’s the anti-thesis of the returns available (or money lost) in #bonds during the 2020 and 2021 TINA (“There Is No Alternative”) era for equities.

I’m fancying public bonds, not “private credit”.

June 10, 2024

by Rob Zdravevski

rob@karriasset.com.au