US government debt has been undergoing a multi-month sell-off, with 30-year Treasury yields reaching their highest level since 2007. The two-year yield rose 76 basis points and a September rate hike is priced at 63% by markets according to CME FedWatch. For the first time since 2019, US government bond investments are now more profitable than crypto cash-and-carry trades, according to Glassnode’s latest research. However, TIPS data contradicts the inflation narrative: real yields rose 84 basis points while expected inflation declined 51 basis points, with the five-year breakeven inflation rate standing at approximately 2.2%.
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