There has been this continual debate as to whether higher oil prices are inflationary or a restraint on growth. This year, the bond market has signaled that it is inflationary.
It seems like the market is obsessing on this bond market fallout, which was somewhat precipitated by the move to raise (interest rates) in Japan. A lot of the fuel that has been used to invest in this bond market has been derived from 'easy money' in Japan.
It seems like the market is obsessing on this bond market fallout.
The bond market is still behind the inflation curve. The inflation story continues to chip away at our economy and it doesn't seem to be getting any weaker.