Recently Federal Reserve Chair Jay Powell said he is targeting inflation.

Perhaps the market is seeing something similar. This prompts today’s question (and chart):

Are the markets about to send a new message regarding inflation?

Today’s chart “2-pack” highlights a couple of key inflation indicators: The Equal Weight Commodity Index and the 10-Year US Treasury Bond Yield.

As you can see, commodities and yields have been in a downtrend for several years – the Commodity Index is marked by each (1).

But both have recently perked up.

If commodities and yields breakout at each point (2) and (3), odds increase a new round of inflation is about to start. Stay tuned!

This chart was first written for See It Markets.com. To see the original post CLICK HERE.

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