Central banks have prevailed: financial markets are in the dark

Some cities around the globe can offer a unique experience when it comes to dining out called “Dinner in the dark”. This is basically having dinner in a pitch black room which completely deprives you of using what is probably the most important sense, namely sight. Whatever their initial intention, confusion and stress, clumsiness and at times acting by instinct are always some of the feelings that participants have in various degrees. This is the perfect comparison for the situation which financial market investors are in. Over time financial markets have been treated as the barometer of economic changes. For a long time sovereign bond markets have mirrored inflationary expectations. The deeper the gap between long-term and short-term yields, the stronger the fears of higher inflation. Similarly, an inverted yield curve may have signaled concerns about a possible recession. // The broken

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