Creeping rise in inflation expectations

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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