• 5 minutes Covid-19 logarithmic growth
  • 8 minutes Why Trump Is Right to Re-Open the Economy
  • 12 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 14 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 59 mins Which producers will shut in first?
  • 2 mins What If ‘We’d Adopted A More Conventional Response To This Epidemic?’
  • 5 hours The Most Annoying Person You Have Encountered During Lockdown
  • 7 mins Its going to be an oil bloodbath
  • 2 hours Why should ANY oil company executive get ANY bonus now?
  • 10 hours How to Create a Pandemic
  • 10 hours Saudi Aramco struggling to raise money for this year's dividend of $75 billion. Now trying to sell their pipelines for $10 billion.
  • 14 hours KSA taking Missiles from ?
  • 16 hours Dr. Fauci is over rated.
  • 9 hours Russia's Rosneft Oil Company announces termination of its activity in Venezuela
  • 7 hours A New Solar-Panel Plant Could Have Capacity to Meet Half of Global Demand
  • 16 hours Breaking News - Strategic Strikes on Chinese Troll Farms
  • 16 hours CDC covid19 coverup?
Alt Text

Trade War Weighs On Western Automakers In China

Western automakers in China are…

Alt Text

Global Economy Throwing Up Red Flags For Oil

Investors are feeling increasingly gloomy…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

The Inflation Boogeyman is Back

Japan pulled out the firepower this week in terms of qualitative easing. Speculation is running the Fed will announce same at the beginning of November.

And so people are worried. That all this money creation means things are going to start getting expensive, really quickly.

Here's how frightened they are.

In the past week, yields on U.S. inflation-protected Treasury securities have fallen off a cliff. Meaning investors are piling into these investments for protection against global money printing.

So much so, the yield on the seven-year inflation protected security has fallen to a near-ridiculous 0.04% this week.

US Treasury Yield Rates

This is astounding. Investors locking up their money for 7 years are rewarded with less yield than on a typical savings account.

Of course, this is a bet on the future. Investors believe inflation will pick up, raising interest rates on the inflation-protected securities and ultimately increasingly yield.

But it's incredible the sacrifice such buyers are willing to make in terms of short-term yield in order to "buy insurance" against inflation. For comparison, yields on regular (non-inflation protected) Treasury bonds are running 1.75%!

This has played out across the inflation-protected curve. Yields on the 10-year inflation-protected security have fallen from 1.3% to 0.5% over the last three months.
The 30-year has dropped from 1.9% to 1.4%.

The inflation boogeyman is back. And scarier than ever apparently.

By. Dave Forest of Notela Resources


Download The Free Oilprice App Today

Back to homepage






Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News