Inflation Expectations Cool as Oil Tumbles Ahead of Fed Decision
- Ten-year breakeven rate falls to near levels seen in June
- Crude oil slumps to six-month low, easing price pressure
An oil pump jack in Midland, Texas.
Photographer: Sergio Flores/BloombergThis article is for subscribers only.
A key market measure of investors’ inflation expectations declined to near levels seen mid-year as oil slumped and consumer price data contained few upside surprises.
The benchmark 10-year breakeven rate — the yield difference between Treasuries and inflation-protected securities maturiting over the next decade — fell about 4 basis points to 2.18% on Tuesday, near the lowest since June.