Man Group Study Challenges View That High Inflation Hurts US Treasuries

The distinction between the level of inflation and its rate of change reframes how duration risk is typically discussed, since it implies that the bond market's worst episodes are tied to momentum in prices rather than to elevated readings themselves. That matters for allocators who have spent the post-pandemic period treating any high-inflation regime as structurally hostile to Treasuries. Whether the historical pattern holds through a cycle where fiscal supply and term premium dynamics differ from prior episodes is the open question.