If the market consensus for year-ahead inflation decreases, it’s a good signal to buy bonds.

Answer : True

Explaination :

Inflation id the worst enemy for bonds . Because Infaltion erodes the purchasing power of bond’s future cashflow If there is

higher current rate of inflation and the higher expected future rates of inflation, the higher the yields will rise across the yield curve, as investors will demand this higher yield to compensate for inflation risk. Against to this if inflation rate is going to decreases then purchasing power will increases and good time to buy bonds at low price that will give higher return in future