However, if the 3 - month LIBOR changes to 1 percent in the next quarter (remember, this scenario is working on a 3 -
month cyclical change), then your monthly rate would increase to 4 percent for those next three months.
Our expectation is that gradually higher levels of inflation breakevens will result from firmer inflation data in the coming
months, while a move higher in real rates will be virtuously tied to
cyclical changes in real growth.