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The Real Economy Is Talking, but Treasuries Aren't Listening

Something's gotta give?
A woman walks past a statue of Albert Gallatin, the 4th Secretary of the U.S. Treasury, while entering the Treasury building in Washington, D.C.

A woman walks past a statue of Albert Gallatin, the 4th Secretary of the U.S. Treasury, while entering the Treasury building in Washington, D.C.

Photographer: Brendan Smialowski/Bloomberg
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There's a massive divergence between recent economic data and U.S. Treasury yields.

Amid widespread risk aversion, the yield on 10-year debt fell below 1.60 percent this month before recovering to back over 1.75 percent on Thursday. According to Deutsche Bank AG Chief International Economist Torsten Sløk, that's still far too low.