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GDP

Why rates are not moving

Darren J. Bradley / Shutterstock
Darren J. Bradley / Shutterstock

This summer, historically low equity market volatility is grabbing all the financial headlines. What is less remarked on is the bond market. Treasury market volatility remains similarly constrained, with yields stuck at around 20 basis points (bps, or 0.20%) below where they started the year. Back in early May I wrote about the yield "melt-up" that wasn't . At that time the thesis was that a combination of steady but uninspiring growth, moderating inflation and lower yields elsewhere would keep interest rates contained. Three months later it looks like little has changed.

Inflation refuses to accelerate

core CPI

Growth is solid but not breaking out

GDP

Citigroup U.S. Economic Surprise Index

chart-economic-surprise

The global yield picture still favors the U.S.

duration Russ Koesterich , CFA, is Portfolio Manager for BlackRock's Global Allocation team and is a regular contributor to The Blog .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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