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Morgan Stanley: Ignore Absurdly Low Treasury Yields Because Bond Markets Never See Inflation Until It's Too Late

U.S. treasury yields are relatively low these days with 10-year government bonds offering just 3.63%. This would seem to imply that bond markets don't expect much inflation ahead, since even a historically benign 3% inflation per year wouldn't leave much of a real return for bondholders. So is the bond market telling us to chill out or is it completely blind right now? It's blind, says Morgan Stanley's Joachim Fels.
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