Below-Consensus Inflation News Out of the U.K. and New Zealand Spark a Bond Rally

Highlights

• Global bonds rally as the U.K. and New Zealand are the latest to report benign CPI data

• Positioning and sentiment data show U.S. investors are all-in on the “risk-on” trade

• U.S. stocks may be rallying on momentum, but prices have run-up far ahead of fundamentals

• The data show the threat of a “new era” of inflation is overblown

Key Takeaways