Markets unambiguously view the last week as increasing the risk of stagflation

Five-year inflation breakevens have touched the highest in the 20 years they’ve existed, while the yield curve (the spread of 10- over two-year Treasury yields) is flattening as swiftly as it has ever done.

Those inflation expectations have been propelled by the remarkable rise in commodity prices.

John Authers Bloomberg 7 March 2022

https://www.bloomberg.com/opinion/articles/2022-03-07/ukraine-confronts-investors-with-risks-of-stagflation-and-nuclear-armageddon


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