On Wednesday last week the Australian Bureau of Statistics (ABS) reported that inflation for the June quarter was 0.4%, down from 1% in 2015. This is watched very closely by the market, as it is a key measure used by the Reserve Bank of Australia (RBA) in making their decision on the official cash rate and increases the probability that the official rate will be cut to 1.5% in August. Low interest rates not only impact retirees looking to live off the income but also contribute to asset price inflation. While this might not be the most exciting of topics, it is important to investors, as assets from shares to real estate are currently being priced with the anticipation that historic low interest rates will continue into perpetuity! In this piece, I look at how the steady twenty-year fall in the 10-year bond rate has contributed to this current asset price bubble.