Why Investors Are Grappling With Global Bond Rout, Part Two

Once again, signs of reinflation

European Central Bank (ECB) in Frankfurt, Germany.

Photographer: Martin Leissl/Bloomberg
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Another bond market meltdown is brewing where the initial one began in April, in signs of a reinflating European economy.

Traders piled on sell orders from Germany to Italy on Tuesday as the first increase in consumer prices in the euro zone in six months suggests growth in the 19-nation economy and the risk of the return of the main nemesis of fixed-income investors: inflation.