Free Trial

Real Yields Doing Most Of The Lifting But Inflation Breakevens Drift Higher

US TSYS
  • The belly-led sell-off has cooled since the surprisingly large fall in the NAHB housing market index, with the largest monthly decline since Apr’20 taking it to the lowest since Jun’20 which also happens to be pre-pandemic levels.
  • Front-end to belly yields are back near where they were prior to stronger than expected nominal retail sales but are still 8bps higher on the day.
  • Higher Fed hike expectations have helped push real yields higher with the 5Y +6bps at -19bps but this has meant inflation breakevens have moved off recent lows, +2bps at 3.09% having touched ~2.90% late last week.

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.