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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.
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- Inflation breakevens have provided a sizeable portion of today’s rise in 5Y Tsy yields (breakeven 4.3bps of 6.3bp total).
- The increase to 2.16% for the 5Y breakeven is minimal in a trend sense though and follows a few days at circa 2.12% for lowest levels since early Jan’21.
- A return to pre-pandemic CPI-PCE differentials in the region of 20-30bps would imply below 2% target inflation expectations on a 5Y basis, contrary to last week's surprise shift higher in U.Mich consumer 5-10Y inflation expectations from 3.0% to 3.2% for the highest since 2011.
- There is much less movement in the 5y5y forward breakeven, hovering very close to an implied target at 2.25%.
5Y breakeven (pink), 5Y5Y forward breakeven (green)Source: Bloomberg
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.
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