Inside the Economy: Inflation Status and the Bond Market

This week on “Inside the Economy”, we examine the state of inflation and the future of the bond market. The yield curve continues to normalize as long-term interest rates slowly creep up. Overall inflation has stayed low, but there are sectors that have seen major price inflation. We are still in the midst of a bull market; how do the last 11 months compare to previous bull markets? Investment-grade bonds were a place of comfort during a volatile year, but has that changed in 2021? Tune in to learn more!

Key Take-aways:

• Textbooks and college tuition led price inflation from 1996-2006
• As industrial and manufacturing production return to pre-pandemic levels, so does U.S. imports and exports
• The current bull market is up 75% from the low in March, the second largest bull market return
• Leveraged loans and high-yield debt start the year off strong
• Paying off all student debt would cost $1.5 trillion