Market - based measures of
inflation compensation declined further; survey - based measures of longer - term inflation expectations are little changed, on balance, in recent months.
Market - based measures of
inflation compensation declined; most survey - based measures of longer - term inflation expectations are little changed, on balance, in recent months.
Not exact matches
If interest rates rise, long duration means TIPS prices
decline, even with their
inflation compensation.
Although
inflation compensation, which has returned as an accurate measure of
inflation expectations, plays a key role in the recent rise in longer - term rates, an earlier post illustrated that the primary reason for the longer
decline in the 10 - Year Treasury note rate is the real, or
inflation - adjusted, yield, as measured by the rate on 10 - Year Treasury Inflated Protected Securities.
First quarter hourly
compensation rose 3.4 % after a 2.4 % gain in the previous quarter, but real hourly
compensation still fell 0.1 % after a 0.8 %
decline in the fourth quarter, showing wage growth is still being outpaced by
inflation.
Market - based measures of
inflation compensation have
declined somewhat; survey - based measures of longer - term
inflation expectations have remained stable.