Bond Market Surges Post-CPI

In the two days following February's CPI report, bond markets surged.

U.S. $100 Dollar Bills.

The recent inflation data has been very good for bondsmen. As inflation begins to trickle back into the economy, interest rates will need to stay up for much loner, making bonds more valuable.

In Wednesday alone, $25 billion in loans were approved, a massive spike from before. These new loans used the most updated rates, around 4.8%, to charge borrowers more while improving their own profit.

While the rest of the market falls, there will always be some individuals who may find fortune: bondsmen. This occurred in many instances before, especially post-CPI's, when companies may need to borrow at higher rates to keep up with inflation.

Also, high inflation means more borrowing by the government. The Trump administration's tax cuts may also lead to more federal borrowing as the deficit resurfaces.