Published on: October 18th, 2021 • Duration: 43 minutes
Real Vision managing editor Roger Hirst zeroes in on how the rampant escalation of inflation impacts the bond market, which Raoul and Julian both explored in-depth in their latest Insider Talks segment. He takes a step back to explain the yield curve itself to thoroughly examine the changing shape of the curve as well as the yield curve’s relationship to currency swaps curves. Hirst also dissects the divergence between the consumer price index (CPI) and 10-year inflation breakeven rates and how the prices of oil and energy are demonstrating higher correlation to the breakeven rate, and he assesses how this and other variables such as wages may affect global growth, the longevity of inflation, and the length of the current cycle. He also takes a look at currencies moving in favor of dollar strength and how China’s shifting policy approach will affect the value of the US dollar, and he explains why he thinks “there's a volatility event coming.”
