Bond Market Wrestles With Risk Inflation Becomes Unmoored
- Gauge of price expectations over the next decade surges
- BlackRock warns of risk that expectations become unanchored
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The bond market is starting to grapple with the risk that inflation could be tough to rein back.
That’s the message from the sharp rise in a market gauge of price expectations over the next decade, one meant to factor out near-term volatility. The five-year five-year forward breakeven jumped to its highest since 2014 on Tuesday, just days after a straight 10-year measure notched a record in Bloomberg-tracked data going back to 1998.