Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

Loading...
Chart Of The Day

Inflation Expectations – on the Fast Track to Nowhere

If you’re worried about high inflation then you must definitely think that the markets have things all wrong.  As we all know, inflation, as measured by the CPI has been extremely low for the last 5 years.  The latest reading of 1.1% is well below the historical average reading of about 3.5%.

But the past is the past.  One of the better ways to gauge the market’s expectations of inflation is to look at the 10 year break-even.  This is just the yield on the 10 year versus the inflation protected equivalent.  When this rate is moving higher it means that the market is pricing in higher inflation expectations and vice versa.

So, what’s it telling us today?  Not much.  In other words, if the markets are right then low inflation is here to stay.

10_BE

Comments are closed.