I haven't recently taken a look at what the Treasury market is telling us about inflation... but that's now changed, and I'm here to share with you. The market predicts continued smooth sailing on the currency front. My method is the very crude subtract real treasury yields from the yield curve. Currency stability is probably here to stay in the meantime, what with the only reasonable alternative in flux and everything... and the market reflects that truth. Anyway, here's the chart over the last 6 days:
- Inflation Expectations Since Last Monday
Not too shabby. The market is expecting decently low inflation of less than 2.2% a year over the next ten years. It's pretty comparable to the last time we checked in (this link). What do you think?
