US inflation is on the rise - JP Morgan

JP Morgan Asset Management, overseeing $1.7 trillion, says US inflation is picking up.

"US inflation has actually come back," Benjamin Mandel, a strategist for the company in New York, said on Thursday.

“This idea that US inflation is low and is always going to be low is an anachronism.”

Bond yields indicate investors expect inflation worldwide of 1.17 per cent over the life of securities, the highest level in eight months.

The number is derived by comparing yields on nominal bonds to those on inflation-linked debt, using Bank of America indexes.

It's still less than the 2 per cent target set by the central banks in the US, the UK and Japan. Benchmark US 10-year note yields fell two basis points to 1.54 per cent as of 6:39 am in London, Bloomberg Bond Trader data shows.

The price of the 1.5 per cent security due in August 2026 rose 5/32, or $1.56 per $1,000 face value, to 99 5/8.

The US will publish data on Friday for producer prices, retail sales and consumer sentiment.

The yield will climb to 1.7 per cent by year-end, based on the median forecast of economists.

- Bloomberg