Bond Traders Sound Inflation Alarm Amid Worst Rout Since 2001
- Ten-year breakeven rate reaches highest level since 2015
- Long end of yield curve is ‘dangerous’: BlackRock’s Rieder
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The rout in the fixed-income universe deepened into the worst in 15 years as traders sounded the alarm on inflation amid speculation Donald Trump’s spending pledges will boost economic growth.
Yields on benchmark 10-year Treasuries posted their steepest back-to-back weekly increase since 2001, and a bond-market gauge of expectations for U.S. consumer prices reached the highest in more than 18 months. Investors responded by demonstrating a solid appetite for an auction this week of U.S. inflation-linked debt.