Bond Market Inflation Outlook Jumps Above Fed's 2% Target: Chart
The yield spread between 10-year U.S. Treasuries and similar-maturity Treasury Inflation Protected Securities climbed above 2 percentage points Tuesday, the first time since March that it’s exceeded the Federal Reserve’s target level for inflation. The breakeven rate, as the gap is known, remained subdued for much of 2017 as consumer price index data missed forecasts. Yet manufacturing indexes coming out this week from China to the U.K. suggest factories may need to boost prices as the global ec
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The yield spread between 10-year U.S. Treasuries and similar-maturity Treasury Inflation Protected Securities climbed above 2 percentage points Tuesday, the first time since March that it’s exceeded the Federal Reserve’s target level for inflation. The breakeven rate, as the gap is known, remained subdued for much of 2017 as consumer price index data missed forecasts. Yet manufacturing indexes coming out this week from China to the U.K. suggest factories may need to boost prices as the global economy heats up.