Monday, June 22, 2009

A nice simple chart from Carpe Diem:

The chart above shows the weekly, bond market-based 10-year TIPS-derived expected inflation, calculated as the difference between 10-year regular, nominal Treasury yields and 10-year Treasury inflation-indexed yields (St. Louis Fed data here)....
Go to Carpe Diem for his commentary (and the reader comment). The market seems to be expecting 2.5% inflation.