The 7 — 10 year range of the municipal bond market has kept pace with U.S. Treasury bonds and
nominal yields remain comparable to U.S. Treasury bonds.
Not exact matches
In contrast to
yields on
nominal bonds,
yields on inflation - linked bonds have for the past six months
remained close to their lowest recorded levels.
Expectations of inflation, as measured by the difference between
nominal and indexed 10 - year bond
yields,
remain at around 2.3 per cent.
Despite the sharp rise in inflation expectations, 10 - year breakevens (the difference between the
yield on a
nominal fixed - rate bond and the real
yield on TIPS)
remain depressed relative to their long - term history.
In our latest white paper, Senior Portfolio Manager Duane McAllister explains how the recent boost in short - term
yields not only allows investors to once again earn a reasonable
nominal return on their money without needing to take significant duration risk, it also provides an opportunity to earn a positive real return, since core inflation measures
remain below the Fed's 2.0 % target.