7 US consumer price inflation reached its highest level in four decades in May 2022. The US Labor department reported that the consumer price index increased by 8.6% in May from the same month a year ago, marking its largest increase since December 1981. Explain how to structure a bond strategy that benefits from rising inflation expectations using the break-even inflation concept. [8 marks] Question 9 On June 15, 2022, the US Federal Reserve increased the range for the Fed Funds rate by 75 basis points. This is the largest Fed Funds rate increase since 1994. Accompanying this increase the Fed said that it is highly attentive to inflation risks. Bond market participants monitor central banks closely because the role that central banks play in global bond marks has increased significantly since the 2008 global financial crisis. Briefly describe how central bank policies influence the bond market. [8 marks]