Premium: Bond market’s most famous voice warns that the public is being conned on inflation

Because huge deal sizes restricts the action to those controlling the big money, most ignore the bond market, which trades negotiable debt of governments, public sector bodies and corporations. Smart investors, however, pay very close attention to the machinations of this market. Primarily because it reflects the movements of interest rates – the 'oil' that stimulates, or slows economic growth.

One of the bond market's best known voices belongs to Bill Gross (77), co-founder in 1971 of the massive Pacific Investment Management Co (PIMCO). At many years Gross ran the company's flagship $270bn Total Return Fund. And when he speaks, everyone who wants to know where interest rates are headed listens. Attentively.

Although Gross has relocated to different pastures, his views remain still deeply respected. So when he calls out Central Banks for heating up an already white-hot money market, best we listen. In a piece from our partners at the Financial Times of London, Gross warns how the creation of fresh money from thin air has pushed many asset classes to 'dangerous' levels. And with inflation starting to show up in the official data…

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