Bond Rally Built on Inflation Euphoria Faces UK Reality Check
- Slower US inflation is spurring bets on interest-rate cuts
- Investors warn the downward path for UK prices isn’t clear
Shoppers cross Gilbert Street in Central London, UK.
Photographer: Jose Sarmento Matos/BloombergThis article is for subscribers only.
A global bond rally ignited by signs that inflation in the world’s largest economy is finally slowing once again faces a reality check this week.
Government debt from around the world is enjoying its best month of the year after a gauge of price pressures in the US last week ebbed for the first time in six months. At home, that’s encouraged bets that interest-rate reductions by the Federal Reserve are just around the corner — and elsewhere, it’s reassured investors that their central banks also have room to cut.