Inflation Expectations Rising
However, that only goes for the yield on nominal bonds. The yield on so-called inflation-protected bonds closed at 1.55%, far below the 1.9% level before the March 18 Fed announcement.
The spread between inflation-protected bonds and those that aren't has thus risen from about just 1.1%: points to 1.55%: points, indicating rising inflationary expectations.
The other popular inflation indicator, gold, hasn't performed as well, but it hasn't really performed bad either, and at any rate that simply reflects worries over central bank gold sales as well as the general decrease in the demand for safe havens that the stock market rally has generated.