In this research piece, Jesus discovers more questions than answers. “If anything, this highlights the volatility of investors’ expectations on short term inflation over the last year.” Volatility in expectations is an understatement. This is why we only take the long end of the curve during melt-downs in yields, and we don’t pin our hopes for stocks solely based on Fed rate hikes.
Observations on the Yield Curve, and Term Structure of Breakeven Inflation Rates
