26 Mar 2015
Inflation rising - BBH
FXStreet (Guatemala) - Analysts at Brown Brothers Harriman explained there are some preliminary signs of somewhat firmer prices in the US and eurozone.
Key Quotes:
"In contrast, prices still seem heavy in the UK and Japan."
"However, inflation expectations, measured by breakevens (difference between conventional yields and yields on inflation protected securities) are rising."
"The 10-year breakeven in the US has risen from about 1.5% in mid-January to 1.6% in mid-March and now are near 1.85%."
"The German 10-year breakeven has risen from about 0.5% in early January to about 1.3% in the middle of last week. It is consolidating near 1.25% now."
"The UK 10-year breakeven is at new highs for the year today, just above 2.6%."
"In late January it was near 2.27% and in the middle of last week it was still below 2.35%."
"Japan's 10-year breakeven is just above 1.0% now. It bottomed in mid-January near 70 bp."
Key Quotes:
"In contrast, prices still seem heavy in the UK and Japan."
"However, inflation expectations, measured by breakevens (difference between conventional yields and yields on inflation protected securities) are rising."
"The 10-year breakeven in the US has risen from about 1.5% in mid-January to 1.6% in mid-March and now are near 1.85%."
"The German 10-year breakeven has risen from about 0.5% in early January to about 1.3% in the middle of last week. It is consolidating near 1.25% now."
"The UK 10-year breakeven is at new highs for the year today, just above 2.6%."
"In late January it was near 2.27% and in the middle of last week it was still below 2.35%."
"Japan's 10-year breakeven is just above 1.0% now. It bottomed in mid-January near 70 bp."