Research: Are U.S. Treasuries Undervalued?

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Are U.S. Treasuries Undervalued?

By Erik Norland, Senior Economist, CME Group

Highlights: 

  • Stocks-earnings disconnect could trigger volatility in equities
  • Fed capping reinvestments could create Treasuries bear market
  • Bearish Treasuries could lead to equities correction/flight to quality
  • Treasuries are relatively cheap; high yield bonds could cost more