Bonds Are Sliding and Analysts Are Struggling for an Explanation

The global selloff in long-dated bonds is dividing opinion among traders and analysts. Some explain it as profit taking, others point to the stronger-than-expected U.S. inflation data, and a few are flagging the possibility of a so-called reflation trade.

Stronger-than-forecast gains in U.S. consumer price indexes in June are being cited as an obvious answer, given the figures prompted rates traders to trim bets on how much easing is on the way from the Federal Reserve.