Treasuries-US yields edge higher as investors weigh Fed rate hike expectations
TLT•Yield curve and inflation breakevens
A closely watched part of the US Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes US2US10=TWEB, seen as an indicator of economic expectations, was at a positive 21.4 basis points.
The breakeven rate on five-year US Treasury Inflation-Protected Securities (TIPS) US5YTIP=TWEB was last at 2.340% after closing at 2.343% on September 21.
The 10-year TIPS breakeven rate US10YTIP=TWEB was last at 2.327%, indicating the market sees inflation averaging about 2.3% a year for the next decade.
Fed comments and oil prices shape the outlook
Boston Fed President Susan Collins wrote on LinkedIn on Tuesday that she supported the US central bank's decision last week to raise rates in the face of risks that future inflation will be above the 2% target.
