INVESTORS RUSH to American Treasuries when they get anxious. In spring 2020, as the severity of the pandemic became clear, yields on ten-year Treasuries sank. That comprised a fall in both expected inflation and real yields, as investors became gloomy about both price and GDP growth. In recent weeks yields have drifted down again, reflecting worries about the strength of the economic recovery. On July 26th the real yield fell to a record low. Investors’ expectations of inflation, though, have held up.

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This article appeared in the Finance & economics section of the print edition under the headline “Real bond yields fall”