Yields at levets not seen in a decade

 

Since the pandemic, 10- and 30-year Treasury yields have been on a steady march higher. We have seen continued inflation above target, continued budget deficits, the shock of pandemic QE, and no strong policy moves to stop the ascent. We are now seeing rates that will take us back up to pre-GFC levels. Could this be considered normalization of rates? This is hard to argue when you look at the combination of inflation and budget deficits. We are moving into a new period of rate behavior, and levels are unlikely to move back to the 3 percent range unless we have a large economic slowdown.