The War on Savers Continues
Washington’s war on savers has been a long battle and it continues with the news that the real yield on the U.S. 10-year Treasury note fell to its lowest level on record Monday, declining to -1.11% (Axios Markets)
Why it matters: It’s the latest entreaty in the war on savers. Central bank policy is rewarding risk-taking and punishing saving at a record level even as inflation expectations continue to rise.
What it means: The negative real yield on government debt encourages investors to move their money into risky assets like stocks in order to earn a return.