Treasury Market’s Reflation Pricing Is On Hold, For Now
James Picerno | May 26, 2021 08:14AM ET
After rebounding sharply from pandemic lows, the 10-year Treasury yield is nearly back to levels that prevailed before COVID-19 began to roil the global economy in early 2020.
But the 10-year rate has been in a holding pattern for the past two months, raising questions about what happens next.
Markets are forward-looking and so the Treasury market began pricing in recovery and reflation in 2020’s second half. The repricing ran its course in 2021’s first quarter and remains on hold as investors consider the outlook for inflation and economy.
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