It was an extremely busy day so this is short and sweet. Many of the themes that I have been discussing remain in place. Rates are still moving higher. This is largely because inflation expectations are still moving higher. I think it is that simple. Here is the 5-Year Breakeven Inflation Rate. It is back to towards the highs last seen in 2008, as the financial crisis was unfolding.
The Market Discounts the Future
The Market Discounts the Future
The Market Discounts the Future
It was an extremely busy day so this is short and sweet. Many of the themes that I have been discussing remain in place. Rates are still moving higher. This is largely because inflation expectations are still moving higher. I think it is that simple. Here is the 5-Year Breakeven Inflation Rate. It is back to towards the highs last seen in 2008, as the financial crisis was unfolding.