Tuesday, February 3, 2009

Inflation? bond traders bet on it

Bond traders are making bets the inflation is coming to the U.S.

The yield on a 30-year bond has risen to 3.6% today, about 100bps higher than all-time lows set in late 2008. Might not seem like much, but it’s pretty breakneck for the bond world… economists polled by Bloomberg didn’t predict yields that high until 2010.

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