Tempered Treasuries

In the weeks since the first vaccine announcement, the stock market has rallied, but not Treasuries; the 30-year is lower today than a month ago. Why? With limited fiscal stimulus, if any, coming from D.C., the need is for more monetary stimulus. That means lower rates due to deliberate Fed buying of long-dated Treasuries becomes increasingly likely. Moreover, high unemployment and low factory utilization rates are not conducive to inflation.