A final switching point for stocks valued on
their dividends in 2018 could be a rise in bond
yields.
That is because the indicators suggest
this year will see inflation rise to structurally-
sustainable levels .
Yet, as treasury yields
are still close to all-time lows, investors clearly
do not expect prices, and thus bond yields, to
rise much. However, once bond investors see
core infation sustainably on target, they will
likely not only push up yields but also steepen
the entire yield curve
EU Forecast
euf:b18:156/nws-01