The $76 Trillion Bond Market Just Flashed A Major Warning...

This year, (2017) was the year that the financial system moved from fearing deflation to expecting inflation.

You can see this in the breakout in inflation expectations. From 2013 until mid-2016, the financial system's expectations of future inflation were in a downtrend. Mid-2016 this changed as expectations began to rise, breaking this downtrend in early 2017.

They've since continued to rally. Bouncing off support.

This trend has since strengthened with Producer Prices spiking in every major economy in the world.

H/T Jeroen Blokland

As you can see, Producer Prices are spiking in China, the EU, Japan and the US: four countries accounting for over two thirds of global GDP.

And the bond market has finally taken note, with bond yields rising above their downtrends in Japan, the UK, the US and Germany.

Put simply, BIG INFLATION is THE BIG MONEY trend today.