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Real interests

Despite all the efforts from the #fed trying to control inflation by raising internet rates, and the renewed optimism from investors betting on a pause in #ratehikes, the whole US treasury yield curve is still showing negative real interest rates. The chart below shows each maturity compared to core PCE (no food or energy price components). And even though we’ve come a long way since the beginning of the year, no investment in any term within the US treasury curve protects an investor against inflation. Since credit spreads are still relatively moderate, investment grade bonds don’t offer protection either. There is still a scarcity of Investment options with positive real returns expectations.

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Source: Bianco Research

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