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10Y Breakeven Again Fails To Move Below 2.25%

US
  • The current 9bp swing off session lows to 3.61% for the 10Y Tsy yield, most recently pushed higher after the 10Y re-open tailed, has been aided by a 5.5bp intraday increase in the 10Y breakeven.
  • This increase saw the breakeven bounce off 2.25%, a level it has struggled to clear in numerous attempts since mid-Nov, with one of those moves higher coming after Powell’s Brookings remarks.
  • Surveyed measures of inflation expectations show something similar, with short-term measures from both U.Mich and NY Fed easing but the longer-term measures off highs and not showing a de-anchoring higher in expectations but equally not moving lower with both the 5-10Y and 3Y measures at 3.0% respectively.

Source: Bloomberg

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