3/14/11

Treasuries Price Gauge Falls

March 14 (Bloomberg) -- Since reaching a 10-month high in December, a bond market measure of inflation expectations the Fed uses to help determine monetary policy has declined to 2.97 percent from 3.28 percent. The five-year five-year forward breakeven rate projects what the rate of consumer price increases may be beginning in 2016, smoothing blips in inflation expectations from swings in oil prices and other temporary events.

Is the price of crude oil and the action of commodities telling us the economy may be slowing down? It is too early to tell. But it is somethng to watch closely.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked second best gold timer by Timer Digest

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