The reasons why the 10-year US Treasury bond is slightly overpriced

Ken Orchard, co-portfolio manager of the T. Rowe Price Diversified Income Bond Fund, explores the direction of US treasury bond yields in Trustnet. Orchard says that increased volatility has driven up yields but that there should be a discussion about the fair value of treasuries. He notes the three elements are fundamental economic data, comparisons with expectations for the Fed and the breakdown of nominal yields into inflation breakevens.

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