Skip to content

Bond Market’s Inflation Gauges Hit Record as Traders Doubt Fed

  • Five-year breakevens hit record amid another curve inversion
  • Bob Michele says he wouldn’t rule out half-point Fed hike
Video player cover image
Powell’s Hawkishness to Surprise Markets: JPM’s Michele
Updated on

The Federal Reserve has much further to go to reassure jittery markets it can cure inflation without jeopardizing growth.

Even after the Fed kicked off a concerted campaign to extinguish price pressures, investors are betting they’ll linger for years longer than the upcoming tightening cycle that is set to peter out by 2024. The inflation breakeven rate on five-year Treasuries climbed to a record Friday, days after a new high on the 10-year rate.