REAL 10-YEAR YIELD NEARS 2008 CRISIS HIGH

The real yield on 10-year Treasuries, which strips out inflation expectations, touched 2.93% on September 30, the highest level since the depths of the 2008 financial crisis, according to Federal Reserve data. It has since eased to 2.74% as of October 16, still far above where it sat for most of the past decade. Funds tracking inflation-protected bonds like $TIP have struggled as traders price in a world of sticky inflation and heavy government borrowing. The era of cheap long-term capital is not coming back soon.