The Traderszone Network

Published in TZ Latest News 10 December, 2015 by The TZ Newswire Staff

What the bond market says about inflation – an interesting divergence

TIPS and oil headed in opposite directions
Analysts at Credit Suisse note the breakdown in the correlation between breakevens and oil.
TIPS are inflation-protected bonds that reset based on the CPI, subtracting the 10-year yield from 10-year TIPS gives a market-based prediction of inflation.