The Treasury market continues to price in rising expectations that the recent inflation surge is temporary. No one knows if this implied forecast will prove correct, but for the moment the moderate slide in 10- and 30-year Treasury yields reflects a crowd that’s inclined to take an ever-more skeptical view of the reflation trade, if only on the margins.
Shares in the conventional energy sector may be destined for dinosaur status as the shift to renewables marches inexorably on, but that hasn’t stopped Big Oil from leading US equity sectors this year.
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