Real Yields

10 year real yields sideways to higher as long as no sustained move higher should be good for Gold and Risky assets

5 year real yields same story

Now if Inflation Expectations or actual infaltion would start to perk up a bit Real yields would continue to stay low. Yesterday from beige book and last weeks CPI we know used car prices and Home prices are moving higher.Also part of reflation trade base metals are moving higher,below LME metal index…

And Bloomberg Commodity sub index of Ag products,Soy ,corn,Wheat,Coffee ,cotton and others trending higher

when if ever will these Higher prices cause producers to increase costs and thus push on on to consumer? Fed obviously hoping for that to happen but since food is not counted as inflationary in Fed Vernacular then hope lies on the base metals, maybe we have to wait a bit longer for inflation surge

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