While the impact of higher oil and gas prices appears to be incorporated into market expectations, Allier highlighted the risk of unpriced food inflation. Observers suggest that markets might be underestimating the potential long-term inflationary pressure from food prices, which could keep bond volatility elevated. AdvertisementKey TakeawaysUnpriced food inflation risk appears to be a concern for bond markets, suggesting potential for increased volatility. Current bond yield increases indicate that markets have already priced in some inflation expectations, but food inflation remains a variable. Any significant increases in food price projections could be consistent with scenarios where bond market volatility persists.