What a Hawkish Fed Means for the Bond Market
J.P. Morgan Asset Management, overseeing $1.7 trillion, says U.S. inflation is picking up. “U.S. inflation has actually come back,” Benjamin Mandel, a strategist for the company in New York, said Thursday on Bloomberg Television. “This idea that U.S. inflation is low and is always going to be low is an anachronism.” Bond yields indicate investors expect inflation worldwide of 1.17 percent over the life of securities, the highest level in eight months. The number is derived by comparing yields on nominal bonds to those on inflation-linked debt, using Bank of America indexes. It’s still less than the 2 percent target set by the central banks in the U.S., the U.K. and Japan. Head of Global Strategy John Bilton discusses with Bloomberg's Francine Lacqua on "The Pulse."