Submitted by CARPE DIEM

One of the key indications of the market’s inflation expectations is the gap between yields on 10-year Treasury notes and Treasury Inflation Protected Securities, known as TIPS.

The gap between regular 10-year Treasurys and TIPS yields has fallen to 1.93%, a level not seen since 2003. The drop in commodity prices, chiefly oil, is being interpreted as easing pressure on virtually all other kinds of prices.

Marketwatch

HT: Clover Aguayo

Visit 1800blogger to see all of our industry leading blogs.