Inflation worries weigh on markets, with US inflation expected to rise to 30-year high
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We’ve woken up to news that inflation has picked up in China and Germany, while oil prices are also climbing, adding to worries that mounting price pressures could prompt central banks to raise interest rates.
With a number of Fed policymakers making louder noises about the need for rate hikes next year, a strong number here could well prompt a rebound in US [bond] yields which have declined quite sharply in the last week or so, with the 10-year down over 15bps from last week’s highs.