From 5-Years To 30-Years, TIPS Implied Inflation Expectations Are Under 2%March 23, 2015
Inflation is falling and so are inflation expectations. We and the majority of the rest of the financial community have been highlighting this for most of 2015. Tomorrow, we finally will get the latest US CPI release (for February) to see what is driving consumer inflation but in the mean time we wanted to give an update on what the bond market is telling about inflation. Spoiler Alert: the bond market believes in lower inflation as well.