Apr. 11 at 10:14 AM
$TLT $IGIB $BND
“The Fed appears to be comfortable with 3% inflation, and seems not overly frazzled about inflation going over 3%, and that was before the energy price shock hit, and now it’s going to “look through” the energy price shock for a while and let inflation do its thing.”
“And maybe that’s the only way the debt – which is on an “unsustainable path,” as Powell likes to say – can be dealt with given the hopelessly Drunken Sailors in Washington: Let it run hot.”
“And to this observer, the current 10-year yield is too low for this environment; it’s not compensating investors nearly enough to take those risks over the next 10 years.”
Wolf thinks that longer dated bonds will be destroyed by higher for longer inflation levels.
While I agree in some ways, I see The Big Ugly, changing that some when it does occur.
https://wolfstreet.com/2026/04/11/us-government-sold-620-billion-of-treasury-securities-this-week-10-year-yield-ends-at-4-31-30-year-yield-at-4-91/