The gap between the nominal yield of 10-year conventional US Treasuries and the real yield of 10-year US TIPS has rebounded over the past month. This increase in inflation compensation could conceivably reflect other factors as well as higher expected inflation. But these factors have probably not played a major role in influencing inflation compensation, unlike between mid-2014 (when the price of oil began to slide) and the middle of February this year (when the US stock market troughed).
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services