As Retail Awakens to Inflation, Bond Yields Have More to Go

US yields are set to rise due to retail investors hedging against inflation. Bond rallies will be short-lived with a downward trend for Treasuries. After experiencing steady inflation for years, both professional and retail investors are adjusting to the new inflationary reality. With inflation not expected to stabilize soon, households are diverting investments to commodities and inflation-protected securities. Despite the market’s predictions, household inflation expectations surpass those of the Federal Reserve. There’s a renewed interest in real assets like commodities