Inflation-linked bonds issued by foreign governments came alive in August, posting the strongest performance among the major asset classes. Last month’s hefty 3.6% total return for the Citi World Inflation-Linked Bond ex-US Index suggests a whiff of worry in the global markets on the subject of future pricing pressure for the global economy. Misguided? Perhaps, given that disinflation and negative interest rates are still casting a shadow across several key regions around the world.
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