Reflation story over – Inflation in G-20 economies slips to lowest level since August

Remember – Chinese PPI had bottomed out in July/Aug 2016 and that exported inflation across the globe.

Inflation in the world’s 20 largest economies declined in May to a level last seen in August, according an Organization for Economic Cooperation and Development release Tuesday. Consumer prices increased by 2.1% in the Group of 20 economies, down from April’s 2.4% growth, the OECD said

The reflation trade is over…So bond yields are about to top out? That is likely, but it won’t hurt the US dollar, given the treasuries are likely to maintain the attractive spread over its global counterparts, unless it the Fed changes its narrative on the interest rates, which is highly unlikely…

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