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U.Mich 1Y Inflation Expectations Surge, Long-Run Steady

US DATA
  • Consumer sentiment firmed more than expected in the preliminary April survey, up from 62.0 to 63.5 (cons 62.1).
  • 1Y inflation surprisingly jumps to 4.6% (cons 3.7) from 3.6% (itself having dropped -0.5pps since Feb), the largest monthly increase since 2021.
  • 5-10Y inflation meanwhile unchanged at 2.9% (cons 2.9) sticking to the range of 2.9-3.1% seen in all but one month since Jul’21.
  • The jump in near-term expectations further support the day’s significant cheaper in Treasuries, with 2YY +14.5bps on the day.

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