Ten-year risk-free bonds have become thorn in US Treasury's side

The US is facing up to yet another 'inconvenient truth' that has been staring them in the face - nam...

The US is facing up to yet another 'inconvenient truth' that has been staring them in the face - namely that holding 10-year US treasury bonds - considered the doyen of risk-free investing - is not such a great idea if you are looking to make any money. At the height of the Bear Stearns crisis back in March, US 10-year yields were as low as 3.3%, their lowest level in five years. But with inflation in the US now running at around 4% (according to the most conservatively calculated estimates) and with 10-year yields hitting a high of 4.04% in May, it is not hard to do the math. Inflation i...