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Just the Idea of Inflation Is Spooking Bond Traders Again

It’s a stark contrast to the state of affairs at the start of 2015, when the free fall in oil and other commodities raised the specter of a global deflationary spiral and pushed central banks from Europe to China to act and stimulate demand.
Photographer: Andrey Rudakov/Bloomberg
By
Liz Capo McCormick and Daniel Kruger
Updated on

Three months ago, bond traders were bracing for deflation in the U.S.

Now, they’re starting to worry about inflation -- and snapping up a record share of Treasuries that offer some protection.