TIPS

March 18th, 2009 3:43 pm | by John Jansen |

The breakeven spreads on 10 year and 30 year TIPS are exploding. That means they are predicting more inflation down the road. The breakeven spreads generally move glacially.

In both the 30 year sector and the 10 year sector they have moved about 11 basis points today.

That movement would be in line with the absolute cratering of the greenback as well as the huge move(upward) in price of gold.

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  1. 4 Responses to “TIPS”

  2. By Brian on Mar 18, 2009 | Reply

    10yr breakeven currently over 100 bps…about time the market started pricing in some inflation.

  3. By Steve on Mar 19, 2009 | Reply

    Kathy Lien, one of the world’s most prominent currency analysts, says this is the largest one-day move in currencies in nearly 9 years! The Euro moved nearly 4% higher within 5 minutes, a breath-taking move in the currency markets! Saying that the Dollar “cratered” is not exaggerated hyperbole!

    This move by the Fed surprised just about everyone. Gold jumped $62/oz. from bottom to top today. Gold was collapsing below its recent trendline support (down $20) until the Fed’s latest action. All the commodities, including ALL of the food commodities, gapped higher. Crude surpassed the $50/barrel market. Only natural gas moved lower, and that because new global supplies are coming online over the next several months. To me, these leaping commodities are a sign of forthcoming inflation. Cheap gas soon past!

  4. By Steve on Mar 19, 2009 | Reply

    OOps! Typo alert. I should have said crude surpassed the $50/barrel PRICE. Sorry!

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