With new labor costs data coming in hotter-than-expected, Treasury yields have begun to rise — the two-year yield moving above 5%. WisdomTree Head of Fixed Income Strategy Kevin Flanagan joins Yahoo Finance Market Domination Overtime to give insight into Treasury yields and how investors should revisit older strategies for current market conditions.
Flanagan offers this advice to investors:"We like to call it like the new old rate regime where rates have gone back to where we were, prior to zero interest rates, negative interest rates, quantitative easing, so I think you have to look at it from the more traditional role for fixed income. One of the ways to focus on it is an inverted yield curve.
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