Treasuries Show Inflation Outlook Slumping While Fed Sees Pickup - Bloomberg

The Treasury market is signaling inflation expectations in the U.S. are tumbling, even as Federal Reserve officials stick to forecasts for a pickup.

The difference between yields on five-year notes and similar-maturity Treasury Inflation Protected Securities, a gauge of expectations for consumer prices, fell below 1 percentage point Monday. The so-called break-even rate is the lowest in six years.

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