According to The Kobeissi Letter, the influx of bonds into the market has led to falling bond prices and rising yields, an effect attributed to basic supply and demand dynamics. This trend has resulted in real yields moving higher consistently since 2022, indicating that inflation is not the primary factor driving the recent increase in rates.

According to The Kobeissi Letter, the increase in bond supply has led to a decrease in bond prices and an increase in yields due to simple supply and demand dynamics. They highlight that real yields have consistently risen since 2022, indicating that inflation is not the main factor driving the recent increase in interest rates. This suggests traders should consider the impact of bond supply on yield trends rather than focusing solely on inflation metrics.