Rates Spark: Snail’s pace, but getting there | Metals Mine

  • Rates Spark: Snail’s pace, but getting there

    From think.ing.com

    The most significant dynamic for market rates is the edge higher in inflation expectations. The entire inflation curve shifted higher through Monday, in tandem with an edge higher in the price of oil. No huge surprise there, given the ongoing (virtual) closure of the Strait of Hormuz. The 10yr inflation breakeven, in fact, hit its highest level (at 2.45%) since the war broke. It's, in fact, been a tad surprising that longer tenor inflation had not seen a more marked rise so far. Most of the rise in inflation breakevens has been in shorter tenors, e.g. the 2yr had a tendency to trade at or about 3% a few weeks into ... (full story)

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