Since the financial crisis, the Fed has been injecting liquidity into the market, and inflation and Treasury yields have remained relatively good. But if it is believed that the money supply has any indication of the direction of yields and inflation, this good trend level may change in the future.

The above chart reflects the comparison between the long-term money supply M2 and CPI. The current trend indicates that driven by more than a decade of monetary stimulus measures, the increase in money supply will eventually significantly affect inflation. Given that the Fed will not reduce its size any time soon, it is expectedQualcomm IncInflation will continue, yields are expected to rebound, and 10-year yields may rise to 2%.