Brian Kantor Columnist

There is a hint of inflation in the frigid northern air. It is being reflected in the long end of the bond markets, which are vulnerable to unexpectedly high inflation and the higher interest rates and lower bond values that follow.

The compensation offered for bearing the risk that inflation may surprise is reflected in the spread between nominal and inflation-linked bond yields. These spreads have been widening in the US, and in low-inflation Germany and Japan...

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