Inventory has been rising steadily over the past year, up 29% in June compared with the same month last year. Prices are still seeing big gains in the Northeast and Midwest.

“the 30-year yield neared the record high seen in May and the 20-year yield touched the highest since 2000.” The rout in Japan’s debt market also followed a tumble in US Treasuries on Friday as worries about inflation re-emerged.

It is 1789. The Bastille has fallen, and Paris breathes the dense air of a promise. In the salon of a countess, a young poet—inspired by the ideals of liberty, equality, and fraternity—recites his verses among nobles who still smile.

Financial markets are various individuals engaged in the buying and selling of financial assets. Most of the time, the actions of market participants are driven by popular ideas. If the decisions taken by the market participants are based on a theory which is detached from reality, then the direction of the market is likely to follow the theory. Conversely, if the market participants were to follow a theory that corresponds to reality, then the market is most likely going to reflect this.