Bond-Market Inflation Skeptics See Little to Fear in Coming Data
- CPI is highlight for Treasury bulls like T. Rowe’s Bartolini
- Weak retail sales could spook markets again, says TD’s Misra
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The fastest U.S. wage growth in a decade has sharpened bond investors’ focus on the potential for inflation to stage a comeback and spur the Federal Reserve to action. But traders aren’t holding their breath.
This week’s data are a bonanza for inflation enthusiasts, starting with an update on consumer prices Tuesday, followed by producer prices and inflation expectations. Some investors have added to wagers that price pressures will strengthen, with the Fed signaling it’s paused and wants to see higher inflation to justify tighter policy. Chairman Jerome Powell reiterated the Fed’s mantra on being patient in a speech Friday night.