Powell Juices Bond Market Bet on Inflation With Tilt to Jobs
- Fed chief offers green light for breakevens, investor says
- Breakeven gauge of inflation expectations has moved up
Jerome Powell
Photographer: Al Drago/BloombergThis article is for subscribers only.
As Federal Reserve Chair Jerome Powell starts talking publicly about the need to protect the job market, a group of bond traders is betting that inflation will remain elevated.
“Powell essentially endorsed being long breakevens,” said Tim Magnusson at Garda Capital Partners, referring to a trading strategy that profits from inflation-linked securities outperforming regular Treasuries.