Marketmind: It’s getting real By Reuters – Investing.com

Marketmind: It’s getting real By Reuters – Investing.com

A look at the day ahead from Sujata Rao.

As markets move to price a U.S. interest rate liftoff, possibly even from March, 10-year Treasury yields have risen a quarter point since the year started. Even more interestingly, "real", or inflation-adjusted U.S. yields are driving the moves with a 33 basis-point jump.

Real yields, while at the highest since last June, will remain deeply negative for a while. But their rise poses challenges for assets that benefited from the there-is-no-alternative reasoning. The past week saw stocks wobble, bitcoin tumble 8% and Nasdaq tech, the quintessential low-rate play, fell 4.5%. Graphic: Real yields, https://fingfx.thomsonreuters.com/gfx/mkt/egvbkjowdpq/Pasted%20image%201641767281191.png