Higher inflation in the US pushes up yields

inflation-road-sign

Inflation in the US continues to show new signs of strength, which is increasing long-term sovereign bond yields amid expectations of a tighter monetary policy.

The headline consumer price index rose by 2.1% year on year for the 12-month period up to the end of January 2018, the Bureau of Labor Statistics said on February 14. Core inflation, which excludes volatile food and energy prices, rose by 1.8%.

Investors reacted to the news by demanding higher compensation for holding long-term assets

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