What I don’t hear mentioned much is the concept that MAYBE the reason the long term are valued lower than short term is because many investors are hinging the economy’s future more on politics than they used to, and in 10 years we are much much more likely not to have Trump-like economic policies than we are to have in 2 years.
All this inversion is saying is an affirmation that Trump and his policies are good for the economy and for investment.
The fear of losing Trumpinomics is what is driving down long term yields
RE: The fear of losing Trumpinomics is what is driving down long term yields
I think you meant the fear of losing Trumponomics is what is driving down long term VALUES ( not yields ).
If yields are down, that means the VALUE of the bonds are up.
A Lower yield means the markets are PURCHASING the bond. A higher yield means the markets are dumping the bond.