5 & 10-Year Inflation Expectations are at Parity

0
5 & 10-Year Inflation Expectations are at Parity

US inflation expectations have declined significantly over the past six weeks. 30-year breakeven inflation is now just 1.59% after hitting a high of 1.86% on 4/29/16. 10-year breakeven inflation has moved from 1.71% to 1.47% and 5-year breakeven inflation has gone from 1.61% to 1.47%. In addition to the overall lowering of inflation expectations, 5-year and 10-year breakeven inflation expectations are now equal for the first time since July 2008. This is in contrast to an average spread of 36 bps from 2008-2015. Lastly, the 5-year, 5-year forward breakeven inflation rate ( Ben Bernanke’s favorite inflation indicator when he was chairman of the Fed) has fallen to just 1.44%. It is just above the lows of 1.41% hit in February but otherwise its at the lowest level since 2009.

1 - Copy - Copy - Copy

1 - Copy - Copy (2) - Copy

SALT New York 2021: Wences Casares And Peter Briger On The Macro Case For Bitcoin

BitcoinAt this year's SALT New York conference, Wences Casares, the chairman of XAPO, and Peter Briger, the principal and co-chief executive officer of Fortress Investment Group discussed the macro case for Bitcoin. Q2 2021 hedge fund letters, conferences and more XAPO describes itself as the first digital bank of its kind, which offers the "convenience" Read More

1 - Copy - Copy (2)

Sign up for reports from Gavekal Capital

Updated on

No posts to display