Comparing The CRB With Bonds by Jim Bianco, C.M.T.
ARTICLE SYNOPSIS ...Comparing The CRB With Bonds
by Jim Bianco, C.M.T.
The Commodity Research Bureau (CRB) price index and the bond market have frequently been
compared in the past because of their interrelated natures. The CRB is considered to be an indicator of
inflation, and changes in the rate of inflation can affect investors' desire to hold bonds. The index, which
tracks 21 commodities, is weighted toward agricultural products (about 62%), and because of its
emphasis on agriculture, some investors tend to disregard it -- an error, because the index serves as an
excellent proxy for commodity inflation.