Indicator Alert: Disappearing Equity Risk Premium

The U.S. 10Y yield has been soaring (from 4.18% to 4.61%) thus far in the month of September. It's not due to rising inflation expectations: The real 10Y yield on TIPS has also soared.

Why are real long-term rates rising? Sorry, it's not due to everyone betting on the nascent AI revolution bringing economic growth and returns on new tech. Rather, as I di…