US TIPS breakeven rates hit post-Brexit highs

14 Jul, 2016

NEW YORK: The US bond market's gauge on investors' inflation expectations rose on Thursday to its highest levels since Britain's vote to leave the European Union three weeks ago after stronger-than-expected data on US producer prices in June.

The yield difference between regular 10-year Treasury notes and 10-year Treasury Inflation Protected Securities grew to 1.51 percent, up 4 basis points from Wednesday, according to Tradeweb.

Copyright Reuters, 2016

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