Bond Traders Lift 5-Year Inflation Outlook to Highest Since 2006
- Latest increase comes amid a bump up in gasoline prices
- Inflation outlook has been helped by U.S. growth prospects
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Bond market expectations for the pace of consumer price inflation over the coming half decade surged on Monday to the highest level since 2006.
The five-year breakeven rate, a measure based on the yield gap between inflation-linked debt and non-inflation securities, climbed as much as 3.4 basis points to 2.7327%, eclipsing a high from 2008. Meanwhile, nominal rates were kept relatively in check, with the five-year yield around one basis point lower at 0.76%.