By Daily Crux Editor Brandon Herrin:

As the market’s risk appetite has grown over the past few months, treasury yields have declined... But they don't come close to reflecting the danger of inflation on the horizon.

Long-term bonds must account for inflation to attract investors, and with 30-year yields at 4.3%, the market is pricing inflation at a paltry 1.9%. Only one problem... The average rate of inflation over the last fifty years in the U.S. is 4.5%. And with the enormous amount of credit the goverment is creating, you can bet we'll see greater than average inflation in the future.

It's one of the surest bets in the market today - long-term Treasury bonds will fall in value.

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