U.S. Yields’ Trek Higher Seen Getting Fuel From Real Rates
- More than inflation expectations, growth side may kick in
- Real rates could turn positive on taper buzz, BI analysts say
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The next leg higher in long-term Treasury yields may come from what’s known as real rates, one of the bond market’s purest reads on the growth outlook.
A burst of strong economic readings -- a mammoth job creation figure Friday and now a report from the Institute for Supply Management showing record growth in service industries -- is fueling bets that expectations for growth, not inflation, will dominate the narrative in Treasuries.