Free Trial

Lower Inflation Expectations Behind Half Of Tsy Rally

US TSYS
  • The rally in 10Y Tsys (-10.5bps) can be attributed to both declining inflation breakevens (-5.5bps) and real yields (-5bps).
  • Whilst still high at 2.93%, the 10Y breakeven is down 15bps from Friday’s high and back close to the average seen since Powell first talked of the need for tightening expeditiously a month ago (although the 5Y5Y of 2.56% remains more historically elevated).
  • Real yields of -14bps meanwhile are towards the lows of last week but have still tightened some 60bps over the same post-Powell period.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.