The big market bet that inflation will jump and the Fed will cut rates anyway
Inflation expectations are going up. Bond yields are going down.
Two-year inflation swaps (in which the buyer receives an inflation-linked payout) have jumped more than 25 basis points over the past two weeks in light of tariffs introduced by President Donald Trump, with promises of more to come as “Liberation Day” approaches. Meanwhile, two-year US Treasury yields have dropped 10 basis points over the same…
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https://sherwood.news/markets/the-feds-buy-a-ton-of-software-palantir-microsoft-and-oracle-are-most/
