"The Fed is regaining their inflation credibility, slowly. As they get inflation closer to the target, their long-run rate will again serve as a credible anchor for yields."
The divide between investors with trillions at stake reflects just how tough monetary policy itself has become, as price pressures remain high and readings of headline and underlying inflation send mixed signals.
From Japanese pensions and life insurers to foreign governments and U.S. commercial banks, where once they were lining up to get their hands on U.S. government debt, most have now stepped away.