US Economy

Here comes the inflation panic

David Llewellyn-Smith
Wednesday 13 January 2021
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Via Goldman:

Bond sell-off indicates new real rates regime

Since the start of the year US bonds have been under pressure as the ‘reflationary’ theme has gained momentum. Despite the concerning increase of new COVID-19infections, the Democratic win in the Georgia runoffs, the OPEC oil cuts and stronger-than-expected December data provided solid support for more rotation across and within assets. US 10y rates broke the 1% threshold with breakeven rates now above 2% and real rates moving higher.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.