Why the Bond Market Is Ignoring Inflation Fears

In this episode of The Economic Forecast Podcast, Lucas and Luna unpack the growing divergence between inflation expectations and bond yields in late May 2026. Despite consumer sentiment hitting a record low and the ten-year breakeven inflation rate sitting at 2.40 percent, the ten-year Treasury yield has actually fallen to 4.49 percent over the past week. Lucas explains the mechanics behind this apparent contradiction — including a flight to safety driven by geopolitical turmoil in Iran, and the market's belief that the Fed's tight policy will eventually cool the economy. Luna questions whether the bond market is being too complacent, and they weigh the risks of a policy error. Tune in for a sharp, data-driven look at what the yield curve is really saying about growth and inflation right now. #Economics #Inflation #BondMarket #TreasuryYields #FedPolicy #GeopoliticalRisk #FlightToSafety #10YearYield #BreakevenInflation #YieldCurve #ConsumerSentiment #IranWar #ECB #MarketSignal #GrowthOrInflation #FexingoBusiness #BusinessPodcast #EconomicForecast Keep every episode free: buymeacoffee.com/fexingo