Inflation Expectations: Our Take.

[ALexLutiera 10]

Just read this article from http://blogs.wsj.com/marketbeat/2011/03/07/inflation-expectations-our-take/

 

MARCH 7, 2011, 12:12 PM ET

Inflation Expectations: Our Take.

 

Not to beat a dead horse, but here’s a longer-term look at 10-year breakevens. As MarketBeat regulars know, breakevens are the yield gap between the interest on regular Treasurys and their TIPS versions. And they’re one of several inflation indicators followed by the Fed.

 

Here we’ve got the 10-year breakeven. You can see it nosedive during the financial crisis amid worries that the U.S. was about to slip into a Great Depression style deflationary contraction.

 

They’ve clearly moved higher, but to me this doesn’t look like panic about inflation, rather it seems to reflect the return of something a bit more like a regular economy. But as we often say, the markets are Rorschach tests, and people see what they want in the meanderings of these markets.

[Minecraft 10]

It's interesting to see this point of view. I can't say fore sure if I agree or not, but it is something I will think about now.

[vs777 10]

hii

 

it's shocking and interesting news for me. I am student of finance and economics. what do you think market can go in the grip of recession and inflation.