Trillion-Dollar Linker Deluge Exposes Rift on Dormant CPI

Governments from the U.S. to Italy are boosting sales of inflation-linked bonds, wagering consumer prices will remain in check even after central banks inundated the world with cheap cash.

Thirty-five nations issued $1 trillion of the securities in the past three years, the most on record, according to data compiled by Bloomberg. The amount of government debt in developed countries tied to consumer prices is now equal to 7.9 percent of the fixed-rate sovereign bond market, the most since 2008, index data compiled by Bank of America Merrill Lynch show.