How Bond Traders, Not Central Banks, Are Driving Rates

Inflation Pressures Mount as Fed Decision Looms

U.S. September CPI showed renewed acceleration driven by energy prices, with further increases expected into year-end. Real wages are under pressure, with consumer-facing companies including Domino's Pizza and McDonald's already signalling stress.

Laurent Lequeu, independent market analyst and writer for the Macro Butler newsletter, examines how rising inflation and a weakening employment market could push the U.S. towards stagflation, what the bond market's move at the longer end signals about structural inflation and fiscal credibility, and how the interest rate differential and capital flows are shaping the yen's outlook.

He also explores China's widening trade imbalance and its reliance on exports over domestic consumption. Tune in for his read on where the Fed, Bank of Japan, and bond traders go from here.

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