Inflation is a bond investor’s worst enemy. Greater prices erode the buying energy of a bond’s future money flows, which pushes bond yields greater as buyers demand extra yield to compensate for inflation danger. The next chart illustrates how inflation progress and bond yields transfer collectively. Inflation sometimes declines throughout recessions (shaded in gray). The place […] Learn extra at ETFtrends.com.
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Ought to Bond Traders Be Frightened About Inflation?
