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Surging Real Yields Jar Markets Eyeing End of Easy-Money Era

  • Inflation-adjusted Treasury yields jump during January selloff
  • Markets brace for pullback of massive pandemic-era stimulus
Updated on

Inflation-adjusted Treasury yields have surged back from record lows, sending tremors across financial markets preparing for an era of historically loose monetary policy to draw to a close.

This month’s jump in so-called real yields follows signals from the Federal Reserve that it’s likely to begin a cycle of interest-rate hikes in March and start whittling down its $8.8 trillion balance sheet this year by not rolling over maturing bonds, withdrawing support from the market.