Yield curves for gov't bonds

[spynosa]

Any thoughts on the inversions in US Treasury and Gilt yield curves? L/T inflation expectations seem contained and so far yield rise has been driven largely by expected interest rate rises, ie. markedly at the short-end where 2-10s are inverted now but 20-30s (or 20-50s) have been inverted for a long time suggesting long-term inflation & growth prospects are poor. A good time to extend duration for long-term investors?

[Hariseldon58]

Not sure I would be extending duration at present with conventional US treasuries.

Real yield on 30 year TIPs is just over 1% vs 3.3% for conventional bonds, implying inflation long term of 2.3%.

Risk free positive real return with long TIPs not unattractive if we go into recession and with the possibility of markedly higher than expected inflation, I have allocated to intermediate and long TIPs.