The mixed picture for the economy is wreaking havoc on a bond market already sending strange signals. The spike in yields post-Jackson Hole speech has subsided. John Likos from BondAdviser says it’s all a proxy for the market’s views on economic growth. John says the action is a sign that markets may be tired of the long-cheered “reflation trade”. If the RBA were to go ahead with more asset purchases (as Westpac thinks it will), John says it won’t have a material impact on a market that’s already used to a stimulus sugar rush. An extension wouldn’t change the BondAdviser team’s portfolio strategy thesis either.