What to Watch in the Week Ahead for Fixed Income

The video discusses the US inflation outlook, noting that despite good growth, inflation remains subdued. It examines high yield earnings, highlighting the impact of low supply and market fundamentals. The bond market is described as nervous due to poor performance, with cash waiting for a downturn. The focus shifts to PPI over CPI, with rising PPI numbers and labor market changes as key inflation indicators. The expectation is that inflation will remain subdued unless manufacturing prices and labor costs increase.

What conditions are necessary for inflation to reaccelerate according to the discussion?

What are the expectations regarding the return of cash from the sidelines into the market?