Implied inflation expectations continue to rise today in the 10 year
TIPS and are now up 40 bps from the day before the March FOMC meeting.
While it’s still at a relatively low level at 1.55% as we should be
thankful for just 1.55% inflation over the next 10 years, it is the
highest level since Sept 30 ’08 when the CRB index was almost 60%
higher. Thus, the FOMC today should pay attention and I hope they do in
deciding any changes they may make today to their asset purchase plan,
particularly with US Treasuries.
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