![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgRzl6zRNqN_rA1E7vOfXoi78ANLNmsb0k_9JPOc2QcJh6c_PMOvVdXqpfjarUaPjN9-xQHS-hWtIst75Zu7tHey8HW0xEIPLhzDy5fvn5RKjs9d591K5yDnrfMutd6v-l9Wsy93pAbfqM/s400/rising+real+interest+rates.png)
One might have thought that widespread fear in financial markets would cause a flight to quality, driving the price of safe assets up and their yields down. That certainly has been happening with short-term Treasury bills. But look above to see what's been happening to the yield on 5-year inflation-adjusted government bonds. (Click on the graph to enlarge.) If one wants to flee risky assets and invest safely, for many investors these securities are a pretty good place to be. But their yields, rather than falling, have been rising sharply of late. It's a puzzle.
Update:
Here.
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