Central banks are unstable

Investors in European bonds are heading into this rate-hike cycle more vulnerable than they’ve ever been before, suggesting that the painful selloff of recent weeks could be only the beginning.

Bonds have tumbled this month as the highest inflation in decades spurs traders and bank analysts to outdo each other in betting on ever more hikes from the Federal Reserve and European Central Bank. The latter is now seen taking its key rate back to 0% this year.

And central banker look like goofballs trying to fake it.