Free Trial
STIR

Effective Fed Funds Rate

CROSS ASSET

Europe keeps US underpinned

GILTS

Is back to session high

US TSY FUTURES

BLOCK, 2Y Sale

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Higher Inflation Breakevens Maintained Post CPI

US TSYS
  • The initial surge in inflation breakevens on the back of US CPI was short-lived but they have since increased again, with the 10Y +5bps on the day at 2.70%.
  • With nominal yields -6.5bps, the increase in the breakeven has come about from an 11bp decline in real yields to +22bps.
  • Putting these moves into perspective though, the breakeven is still considerably lower than the >3% it touched two weeks ago as real yields have tightened having only turned positive on May 2.

10Y nominal yield (white), breakeven (yellow) and real yield (green)Source: Bloomberg

112 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.
  • The initial surge in inflation breakevens on the back of US CPI was short-lived but they have since increased again, with the 10Y +5bps on the day at 2.70%.
  • With nominal yields -6.5bps, the increase in the breakeven has come about from an 11bp decline in real yields to +22bps.
  • Putting these moves into perspective though, the breakeven is still considerably lower than the >3% it touched two weeks ago as real yields have tightened having only turned positive on May 2.

10Y nominal yield (white), breakeven (yellow) and real yield (green)Source: Bloomberg