Prof G Markets · Thursday, September 3, 2026
An investment professional asserts that the previous era of negative interest rates for bonds was an anomaly, describing it as akin to paying 200 times cash flow for a 10-year bond. He believes current yields are normalizing to historical levels after inflation 'woke up' the market.
“I don't think people fully appreciated what they were paying. We just went through a bond bubble bursting, okay? When you have the 10-year bond yield at 50 basis points, that's like paying 200 times cash flow for that asset.”
“So, people were paying enormous multiples for bonds. And so what we've really done is normalized the bond market.”
“But inflation has kind of woken up. And so it's really rera-ted bond yields back to levels that are really more normal if you look at history.”