Free Trial

J.P.Morgan Remain Neutral On TIPS Despite Cheapness On Model

US TSYS/TIPS

In the wake of Thursday's CPI print J.P.Morgan note that "breakevens outperformed versus the carry implications of the print and the beta-adjusted move in yields. Across the curve, 5-, 10-, and 30-year breakevens widened 5bp, 3bp, and 2bp, respectively, only partially retracing the underperformance of recent sessions. At current levels, the forward curve is priced for very little overshoot of the Fed's 2% PCE target beyond this year, and breakevens remain cheap versus our fair value model. Nonetheless, we remain neutral on TIPS over the near term ahead of next week's FOMC meeting."

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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.