Bond Traders’ Inflation Outlook Cooled in ‘22 for First Time in Years

Bond traders have pulled back, over the course of this year, on their expectation for where US inflation will be in a decade, suggesting growing confidence that 2022’s consumer-price blowout is under control.

With economic data showing signs that the series of supersized interest-rate increases from the Federal Reserve is beginning to have an effect on price pressures, market indicators are showing an annual pullback in traders’ inflation perceptions for the first time in at least two years.