Republished from Dr. Ed Yardeni’s blog: “Dr. Ed’s Blog”
The backup in the 10-year US Treasury bond yield since late February certainly reflects mounting confidence in the strength and sustainability of economic growth. The nominal yield rose to 2.31% on Friday despite the Fed’s commitment to continue its Maturity Extension Program (MEP), a.k.a. “Operation Twist.” Since MEP was introduced on September 21, 2011, the bond yield has traded mostly below 2.0%. Perversely, yields might be starting to untwist because inflationary …