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> Real 30-year yields are steeply negative in the US as well, with nominal yield at 1.85% and year-over-year CPI above 5%. year-over-year CPI is backward looki
by martincmartin 5y ago
> Real 30-year yields are steeply negative in the US as well, with nominal yield at 1.85% and year-over-year CPI above 5%.
year-over-year CPI is backward looking: it compares one year ago to today.
Treasury yields are forward looking: If I tie up money now, how much more will I get one year from now.
Last year was pretty unusual. People expect the next year to be different.