Inflation, growth, and the bond market: Navigating the new economic crosswinds

The Foucault pendulum within the bond market is swinging more erratically once again. Originally designed by French physicist Léon Foucault in the 19th century, the pendulum demonstrates the Earth's rotation through its slow, continuous shift in direction. As a metaphor in the bond market, it reflects the fluid shift in investor focus — not simply between two poles, but between multiple economic forces such as inflation and growth. In recent years, inflation dynamics have exerted a strong influence, raising concerns about price stability. Now, however, growth worries are regaining promin...