Axios writes, "A new low in the war on savers." They tell us, "It's the latest entreaty in the war on savers. Central bank policy is rewarding risk-taking and punishing saving at a record level even as inflation expectations continue to rise. What it means: The negative real yield on government debt encourages investors to move their money into risky assets like stocks in order to earn a return." The article explains, "Real yields have consistently declined despite inflation expectations rising, an unusual phenomenon. On Monday, the expected breakeven inflation rate on 5-year, 10-year and 30-year Treasuries all rose above 2%, the Fed's longtime inflation target, and their highest levels in more than two years. Yes, but: Despite the unprecedented environment, uncertainty and fear have kept most Americans piling into bonds and savings accounts. U.S. companies and municipalities issued a record amount of debt last year at record low rates, and investors bought $183 billion worth of bond funds between January and November. They also held $4.3 trillion in money market funds, according to data from the Investment Company Institute."

Email This Article

Use a comma or a semicolon to separate

captcha image