Over the past few months intermediate- to long-term Treasury yields have moved higher by as much as 50 basis points,1 despite moderating inflation pressures. Several factors have contributed to the uptrend: • The economy has been more resilient than expected, raising concerns about inflation rebounding. • There is still a risk for more Federal Reserve rate hikes. • Worries that the increasing supply of bonds that need to be issued due to rising fiscal deficits will mean that yields need to rise to find buyers. While these concerns are likely to linger, we believe that they are largely discounted at current yields, ... (full story)