Bond investors go hunting for ways around endless inflation curse

Investors are piling into inflation-linked bonds as they make bets that the shutdown of critical oil shipping channels will ultimately overwhelm the ability of central banks to tame runaway cost increases.

More than $US2.6 billion ($3.6 billion) was funnelled into inflation-linked exchange-traded funds in March, the highest inflow since Russia’s invasion of Ukraine in 2022, with $US2.2 billion added in April, data published by BlackRock shows, as investors seek protection from price rises.

Source: https://www.afr.com/markets/debt-markets/bond-investors-go-hunting-for-ways-around-endless-inflation-curse-20260511-p5zvr2