Wall Street Gets More Anxious About Long-Term Inflation

Wall Street Journal: “Investors bet on inflation by buying and selling both ordinary U.S. Treasurys and those that hedge the risk of inflation, called Treasury inflation-protected securities, or TIPS. The gap between the yields of the two types of bonds—known as the break-even rate—recently hit its highest level since October 2022, according to Federal Reserve data, suggesting that investors expect annual inflation to average around 2.7% over the next five years.”