Here is a historical look at the US 10 Yr and CPI with Annual Percentage Change:
Click to enlarge
Under normal circumstances, interest rates will rise along with inflation. They more or less move in lock step. But ZIRP and QE means that these are not normal times. Thus, the FED’s intervention means that correlation has been at least temporarily broken.
This raises the question: Given the magnitude of the move in percentage terms, we must ask if the spike in yield signal “Tapering” or is it revealing the start of inflationary pressures?
As the end of QE approaches, we should see yields normalize. That suggests that Yield has plenty more upside room to grow.
Note: We are underweight bonds
Proof the Bond Bull is Over: PIMCO Selling Hedge Funds (August 29th, 2013)
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.