Nominal US yields
As inflation spurs central banks to raise interest rates, it is interesting to see how high we can still go compared to previous decades.
Our first chart shows the evolution of US 10-year yields with decennial averages. The nominal rate peaked in the early 1980s when the Federal Reserve kicked off a series of sharp rate hikes to bring down ultra-high inflation. Since then, a prolonged period of disinflation has led yields to decline continuously – from more than 10% in the 1980s to just over to 2% following the 2008 financial crisis.