Friday, August 14, 2020

Inflation is here

 


Check this out.  The 30-year rate jumped from 1.20 to 1.42 in 7 days.  That is an 18.33% increase.  Since bond prices are the inverse of yield, that means the value of the 30-year dropped by 18% in one week.  There is similar action in everything over 1 year.  The  2-year rate jumped from 0.11 to 0.16 in one week, which is a 45% increase.

Inflation is here.  Well not this year, but by 2022 we will see it.

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