The Weekly Fix: Really Low Real Rates; The (Maybe) Quant Coup
Jerome Powell, chairman of the U.S. Federal Reserve.
Photographer: Al Drago/Bloomberg.
Welcome to The Weekly Fix, the newsletter that’s still working on its poker face. I’m cross-asset reporter Katie Greifeld.
Another week, another surprisingly intense Treasury rally. Yields on 10-year Treasuries are set to drop for a third straight week, and briefly cracked below 1.3% in U.S. trading Thursday. However, the real action -- as it often is -- is in real yields. A precipitous drop took 10-year real rates as low as minus 1.05% this week, the most deeply negative since February.