Treasuries Approach Pre-Pandemic Norm With Real Yield Above Zero

  • 10-year TIPS yield climbs above zero as bond selloff extends
  • Traders continue to bet on aggressive Fed rate hikes
WATCH: U.S. real yields have moved back to positive territory for the first time in more than two years. Kristine Aquino has more.Source: Bloomberg
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Investors in 10-year Treasuries can expect to earn real returns on their money for the first time in more than two years.

The yield on 10-year inflation-protected Treasuries rose to as high as three basis points in Asia trading Wednesday. In a key step toward pre-pandemic normality, that signals the income on nominal 10-year notes is expected by investors to exceed average inflation over the coming decade.