Sometimes it is important to just stop, look around, and see where we actually are. The Covid restart is not going well. Bonds are selling off in markets around the world. As their prices fall and yields rise, holders of longer-term bonds are losing large amounts of money. Any fall in short-term rates puts pressure on the yield curve, which is a measure of future interest rate changes and of economic activity. This kind of sell-off happens for one of two reasons. Either markets are a lot more worried about inflation and central banks’ reactions to inflation, or they are…

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