Bond Yields Predict 'New Mediocre' Is Here to Stay

The economy isn't doing what the textbooks say it should.

No sunshine on the economic horizon.

Photographer: Jasper Juinen

"In price is knowledge" was the dictum drummed into me by an editor when I first started writing about finance. The bond market is telling us that the outlook for growth and inflation is the worst it's been for almost a year. And it's also suggesting that central banks will fail to meet their key policy objective of pushing inflation back up to 2 percent.

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