Changes in inflation can affect the demand for bonds, but the expected real rate of a nominal treasury is established by the supply of and demand for bonds. Expected inflation can stay flat and real rates still can rise, causing nominal rates to rise.
The future may look nothing like the last few decades with respect to interest rates and bonds if there is a secular shift in the supply and demand for bonds. Or it may look similar. Nobody knows.
The future may look nothing like the last few decades with respect to interest rates and bonds if there is a secular shift in the supply and demand for bonds. Or it may look similar. Nobody knows.
Statistics: Posted by Northern Flicker — Tue Oct 22, 2024 11:01 pm — Replies 390 — Views 21778