We had thought the inflation/yield story was a normal development and it was silly for traders to overreact. We were wrong. Yes, the story has been developing since last summer, when yields hit bottom, but apparently it came as a surprise that yields could become real, i.e., nominal exceeding the inflation rate for a genuine return. We are not there yet by any means, but a rise to levels we last saw a year ago after a crash to 0.380% is a mighty move in bond market terms.
See the 3-year chart, and also the WSJ version, which squashes