Treasury Traders’ Five-Year Inflation Expectations Top 3%
- Rising prices drive demand for inflation-protected bonds
- Beyond the next five years, price gains are seen moderating
This article is for subscribers only.
Bond traders’ expectations for how fast inflation will rise over the coming five years have topped 3% for the first time on record.
A rise in the so-called breakeven rate on Treasury Inflation Protected Securities shows investors are seeking protection from consumer-price gains that exceed the Federal Reserve’s 2%-over-time target.