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What to Keep in Mind Ahead of US Jan Inflation Data
With demand still under pressure in the middle of a pandemic, it might seem odd to talk about inflation. Especially with jobs growth stagnating, as we saw with last Friday’s NFP report. But this is the scenario that an increasing number of analysts are considering. The price of bonds is reflecting that. At the start of the week, the yield curve is at the steepest it’s been in years. The 30-year bond is closing in on a two-year high of 2.0%. This means that investors are banking on an increase in inflation soon, and also the Fed being forced to raise rates. On Friday we saw both houses of Congress vote to push ... (full story)