The Great Inflation Debate Pits Precious Metals Against Bonds

What’s curious is that bond investors don’t appear to share these concerns. In the world’s largest public debt market, U.S. Treasury yields have been falling at the short end. At the long end of the curve, yields have been stable even after the recent sell-off in Japanese government bonds (Figure 4). While it’s understandable that short-term yields are falling, given the pressure on the Federal Reserve (Fed) to cut rates in the face of softening core inflation and weak employment growth, it is curious that ...