Opening Statement from the April 2021 Intelligent Investor (part 1)

Although the yield on the 10-year Treasury Note remains in a strong uptrend, its appreciation has been more contained since the March issue. This is clearly good news for the stock market.

As previously discussed in March, the rapid rise in the yield has been attributed to expectations of inflation by investors. The reality is that no one can know for certain why Treasury yields have risen because we do not know the reasoning of each investor who has sold bonds causing yields to increase.

We believe the increase in Treasury bond yields is to be expected given the improvement in the economy rather than due to concerns about high levels inflation.

Some investors may have sold bonds due to inflationary concerns. And this may have helped account for the rapid increase in the yield. But we believe the majority of investors sold treasury bonds for other reasons.

Note that when