The Inflation Boogeyman is Back
Japan pulled out the firepower this week in terms of qualitative easing. Speculation is running the Fed will announce same at the beginning of November.
And so people are worried. That all this money creation means things are going to start getting expensive, really quickly.
Here's how frightened they are.
In the past week, yields on U.S. inflation-protected Treasury securities have fallen off a cliff. Meaning investors are piling into these investments for protection against global money printing.
So much so, the yield on the seven-year inflation protected security has fallen to a near-ridiculous 0.04% this week.
US Treasury Yield rates – 7 Year Security Real Yield Rate - Chart
This is astounding. Investors locking up their money for 7 years are rewarded with less yield than on a typical savings account.
Full article at: Inflation Boogeyman
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