Real Rates Drive Up US Yields Amidst US Economic Growth

The US Treasury yields surged in September, driven by real interest rates rather than inflation expectations.

This reflects confidence in the Federal Reserve's strategy, which is fueling economic growth and higher rates in America.

America's investment boom, particularly in tech, is driving this growth, while Europe lags behind with minimal investment growth.

The euro-area interest rates have reached their carrying capacity, limiting further ECB tightening and making European government bonds more attractive than Treasuries.