These days, long-term inflation expectations are much better anchored than they used to be 10 or 15 years ago.

This is the highest level of inflation expectations since August 2008.

And two gauges of inflation expectations have moved higher recently.

Of course there has always been a link between unemployment numbers and inflation expectations.

And, as the bond rally itself suggests, inflation expectations seem on the whole to be improving.

The bond market story isn't a story of inflation expectations.

One of the more worrisome, but hard to define, changes has been inflation expectations.

Today, inflation expectations are extremely low; in fact, there is more fear of possible deflation.

"There was a real change in inflation expectations - people expected it to stay low," she explained.

Anyone with a strategy of betting on higher inflation expectations has done well.