BNP Joins Goldman Warning of Bond Market's Inflation Complacency
- Strategists are saying that U.S. inflation has `troughed'
- Banks recommend bets on higher 10-year break-even rate
This article is for subscribers only.
Count BNP Paribas SA among the growing list of firms recommending investors load up on securities set to profit from rising U.S. consumer prices.
The Paris-based lender joins banks including Goldman Sachs Group Inc. and Credit Agricole SA that say inflation expectations implied by bond yields underestimate the potential for consumer prices to rise at a pace closer to their long-term average. They expect the recovery to be driven by U.S. economic growth and stabilizing energy costs.