Sterling jumped 0.6% against the US dollar this morning, on the news wages in the UK grew at their fastest rate since 2001 in the three months to the end of April.
The month of May marked the end of the UK's brief spell of negative inflation, as rising fuel costs have pushed the CPI figure above the zero mark once again.
Cazenove Capital CIO Richard Jeffrey examines the scenarios with the greatest 'potential to sting' fixed income investors.
A rise in inflation expectations is prompting more fund managers to seek ways to protect their portfolios, despite headline price indices sitting at ultra-low levels.
The International Monetary Fund has urged policymakers in the US to delay hiking interest rates or face a further bout of "financial instability".
The sell-off in European government bonds has spilled over into equities once again on Thursday, with UK stocks unable to escape the pain.
Renewed yen weakness could bring about a fresh global currency war resulting in a 'tidal wave of deflation' in China and the West, Société Générale's Albert Edwards has warned.
The Office for National Statistics this morning revealed UK CPI inflation turned negative for the first time on record, but key industry figures suggest this deflationary spell will be temporary.
UK CPI inflation has turned negative for the first time on record, as the recent slump in the oil price continues to put deflationary pressures on the UK economy.
PIMCO's CIO Mihir Worah has labelled shorting UK RPI 'the carry trade of the decade', as he sees inflation in the UK remaining below current expectations.