Inflation expectations now above pre-Pandemic levels

Peter Boockvar‘s chart and comment:

We seem to now be playing a dance with that magic 1% level in the 10 yr that only has relevance because it’s a round number. That said, I expect it to be breached soon. As for inflation expectations, they continue higher as the 10 yr breakeven is up another 1 bp to 1.91%, the highest since May 2019 and getting ever closer to that other magic number, made up by the Fed, of 2%. Tomorrow we get CPI.

We’re going to be talking as much about inflation next year as we were talking about disinflation in 2015 and deflation in 2016.

I’m not saying you’re getting inflation, I’m saying you’re going to get the inflation conversation.

Go read up on the topic if you’re not ready for the inundation.