Bond markets are too relaxed about inflation

Even if you do not invest much in bonds, the bond markets are hugely important. Jim Leaviss, the former M&G bond guru, who sadly passed away last month, was fond of saying that “there is nothing more fascinating than a fixed-income instrument”. There is a lot of truth in this. The bond markets directly reflect consensus about inflation, growth, government finances and more, while influencing the price of many other assets.So while investors who are willing to take greater risk in