And this discussion about long term rates is before considering the impact of Quantitative Tightening. Good to remember that QE was announced in November 2008. Before this announcement, 10 year treasury had a yield of 3.97 % (in Oct 08) and 3.82 % (in Aug 08, before GFC). If we consider that QT will, over time, neutralise the positive effect of QE on long term rate, it may look logical that 10 year treasury will go back to this level, around 3.8 %. In 2008, US inflation rate was 3.8 % (vs 2.85 % in 2007).
