2 years ago the 10-year Treasury was yielding 1.5%. Inflation would have to be below 1.5% for the following 10 years for the bondholder to make back more than

2 years ago the 10-year Treasury was yielding 1.5%. Inflation would have to be below 1.5% for the following 10 years for the bondholder to make back more than inflation. Actually people who bought Treasuries in 2021 are almost underwater on it already, just in inflation these last two years. Cumulative price increases for 2021 + 2022 was 14.5%, while 10 years of 1.5% interest gives you 16%. Inflation would have to be basically zero for the next 8 years for them to break even.