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Investors bought the dip in U.S. Treasuries on Monday following a significant move higher in yields on longer-dated maturities after the Fed's Jackson Hole symposium last week. Investors especially bought the 30-year bond, which saw yields rise to the highest level since mid-June on Friday.

Why it matters: A tug of war is developing in the bond market as inflation expectations are rising thanks to unprecedented central bank and government stimulus measures globally.

  • But central banks also are buying bonds, bidding prices up and keeping yields down.

Between the lines: Central bank support has pushed real yields on some investment-grade corporate bonds into negative territory as prices continue to decline and inflation expectations rise, per the Financial Times.

  • Investment-grade corporate bonds with maturities between one and three years posted negative real yields for the first time since March 2017, and bonds with maturities between five and seven years saw their real yields turn negative this month for the first time since 2013.

Yes, but: Real yields subtract inflation expectations from a bond's nominal yield, meaning investors are buying the bonds almost entirely on the expectation that they will rise in price. It suggests the bonds are seen more as a speculative asset than a safe store of value that will provide stable income.

Go deeper

Tracking the Dow's road to 30,000

It took 218 trading days for the Dow to hit the latest 1,000-point milestone.

Why it matters: Dow 30K is a purely symbolic milestone. The Dow hitting 30,001, for instance, is no less significant.

40 mins ago - World

Putin foe Navalny to be detained for 30 days after returning to Moscow

Russian opposition leader Alexey Navalny. Photo: Oleg Nikishin/Epsilon/Getty Images

Russian opposition leader Alexey Navalny has been ordered to remain in pre-trial detention for 30 days, following his arrest upon returning to Russia on Sunday for the first time since a failed assassination attempt last year.

Why it matters: The detention of Navalny, an anti-corruption activist and the most prominent domestic critic of Russian President Vladimir Putin, has already set off a chorus of condemnations from leaders in Europe and the U.S.

Biden picks Warren allies to lead SEC, CFPB

Photo: Justin Sullivan/Getty Images

President-elect Joe Biden has selected FTC commissioner Rohit Chopra to be the next director of the Consumer Financial Protection Bureau (CFPB) and Obama-era Wall Street regulator Gary Gensler to lead the Securities and Exchange Commission (SEC).

Why it matters: Both picks are progressive allies of Sen. Elizabeth Warren (D-Mass.) and viewed as likely to take aggressive steps to regulate big business.