The Bond Market has been under selling pressure of late because of inflation, not just here, but globally as well. Tonight at 8:15pm ET, Fed Chairman Ben Bernanke will speak on inflation at a Boston Fed conference today. Last week, Big Ben sent the Stock market lower when he said the increasing evidence the public expects prices to rise is a “significant concern” for the central bank. Both Stocks and Bonds hate inflation, so rest assured all the financial markets will be tuned in to his speech.
Speaking of inflation - the average price for gasoline in the US rose to an all-time high above $4.00 a gallon Sunday, following the spike in crude oil futures seen in the previous week. Goldman Sachs says that gas prices could reach $5.75 a gallon while the price for a barrel of oil could hit $200 in the next two years.
