March 19, 2020

Fathom’s Chart of the Day 19.03.20: Inflation insurance getting much cheaper

by Fathom Consulting.

Inflation insurance getting much cheaper

In all the turbulence of the past few weeks, it is inevitable that a number of significant price moves will have been overlooked. We have seen very little comment to date on the collapse in inflation breakevens, with the average implied rate of US CPI inflation over the next five years dropping more than 150 basis points to 0.2%. Even larger moves occurred in the wake of the collapse of Lehmans, only to be reversed albeit over more than a year.

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