Why are Bonds Calm About Inflation?

CME Group
Economic Research

Why are Bonds Calm About Inflation?

By Erik Norland, Senior Economist, CME Group

Has Quantitative Easing Distorted Treasuries Market?
  • U.S. bonds muted even as June inflation rose to multi-year highs.
  • Bond investors seem to share Fed view of rising inflation being transitory.
  • Investors might feel supply chain disruptions and labor shortage could ease.
  • Have the many years of quantitative easing distorted Treasuries market?
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