JPMorgan has turned bullish on TIPS breakevens, which is the yield gap between nominal and inflation-protected Treasurys. TIPS have an edge as inflation expectations grow alongside QE expectations, and with this Friday's CPI reading seen increasing 0.6% last month. Already, the 10-year breakeven rate has risen to 2.39% recently from 2.26% at the start of the month. That means investors expect a 2.39% annual rate of inflation over the next decade, above the Fed's 2% long-term target.
Find us on Google+
No comments:
Post a Comment