The first quarter of 2022 was painful for financial markets and heartbreaking for those watching the tragic events unfolding in Ukraine. The bond market massacre, beginning last year, accelerated with 10-year U.S. Treasury yields jumping to 2.32% from a low of 0.51% in early August 2020.
Until recently, inflation has been seemingly non-existent. Between 2008 and the beginning of 2021, inflation had increased by approximately 1.6% per year. Fast forward to today — a basket of goods and services as measured by the Consumer Price Index (CPI) has risen by over 5% each month since May 2021.