How have nominal yields remained so low? It's one of the true conundrums of 2021. (THREAD) 
If you told me a year ago that the economy would be running at beyond capacity (measured by the spread between the U3 unemployment rate and “full employment”), and that inflation would be near 7%, a one-handle would not have been my base case for the 10yr. /2
Maybe the answer lies in the four Ds: debt, demographics, disruption & digitization (hat tip to Eric Peters of One River Asset Management). Perhaps those secular forces override any cyclical concerns about supply chain bottlenecks. /3
Indeed, this is very much part of my secular bullish thesis, which I will discuss more, in-depth, next week. /END
• • •
Missing some Tweet in this thread? You can try to
force a refresh
