market fundamantals

Markets

Inflation May Not Be Coming, But People Are Starting To Believe It Is

AXA IM | The broad regime change is now underway, from regulation, austerity, QE and bond markets towards, more growth, market pricing and real assets. The recent sell off in bonds is not so much about a change in views on inflation and growth (the new narrative to ‘explain’ bond yields), as it is a normalisation of interest rates away from QE towards ‘free market’ valuations, ones which are set by inflation and growth and would be much higher.