Question: Suppose Baa-rated bonds currently yield 6%, while Aar-rated bonds yield 5%. Suppose that due to an increase in the expected inflation rate, the yields on

Suppose Baa-rated bonds currently yield 6%, while Aar-rated bonds yield 5%. Suppose that due to an increase in the expected inflation rate, the yields on both bonds increase by 1%. What would happen to the confidence index? Would this be interpreted as bullish or bearish by a technical analyst? Does this make sense to you?

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