Bond Traders Home In on Inflation Mystery as the Key to Winning 2018
- Debate divides Wall Street; Goldman says short the 10-year
- Yields now show more sensitivity to inflation than jobs data
OCBC's Menon Says Inflation Is Big Risk for Markets
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For traders in the world’s biggest bond market, getting inflation right is shaping up as the key to winning 2018.
By some measures, Treasuries have become more sensitive to consumer-price data than monthly job statistics, traditionally the highest-stake set of economic figures. The shift underscores how investors are struggling with the mystery of tame inflation and whether to temper their skepticism about the Federal Reserve’s projected pace of tightening in 2018, following a likely increase next week.