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Sam Goldfarb reported in the wall street journal (27 Aug 2019) that " yields on short-term...

Sam Goldfarb reported in the wall street journal (27 Aug 2019) that " yields on short-term Treasurys are largely dictated by expectations for short-term interest rates set by the Fed, while yields on longer-term bonds are more influenced by the outlook for growth and inflation." If the outlook for growth and inflation is that there will be no change in growth, but higher inflation, then how will this affect the yield on longer-term bonds?

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Higher inflation means higher risk and greater erosion of the real value of the bonds. It will lead the investors to demand higher interest rate. So, yield rate will increase, for the longer term bonds. It will compensate for the rising inflation, higher risk and loss of real value of investments.

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