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 acceleratecore CPI
Growth is solid but not breaking outGDP
Citigroup U.S. Economic Surprise Index
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 .