TLH - Should The Bond Market Expect The Unexpected?
By Kevin Flanagan, Head of Fixed Income Strategy
Quick question: What typical bond market catalyst has received scant attention of late? Obviously, it's not Federal Reserve (Fed) policy, nor is it some of the latest softer-than-expected U.S. economic data, such as retail sales and industrial production. Give up? How about inflation? While the most recent report on the Consumer Price Index ((CPI)) was not headline-grabbing, I'm going to pose the following question: Should the bond market expect the unexpected?
CPI is the most closely watched inflation measure on a broader basis. Certainly, the overall number