Treasury yields may have finally started to rise over the last several days, but compared to CPI they still haven't risen nearly enough. CPI was up 2.9% y/y as of the most recent reading, but the 10 year treasury bond is only yielding 2.27%. On average over the past 40 years, the 10 year treasury bond has yielded 2.5% (the red line on the chart) more than trailing CPI, which would imply that today's yield should be 5.4%.
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