Morgan Stanley Ends Bearish Bet on Break-Even Rates After Yellen
- Thirty-year inflation gauge holds near highest close since May
- Company recommended in July investors short break-even rates
Are U.S. Treasury Yields Likely to Increase in December?
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Morgan Stanley is abandoning a prediction that U.S. break-even rates will fall as the outlook for prices in the world’s biggest economy surge to the highest level in five months.
The yield difference between 30-year Treasury bonds and similar-maturity inflation-protected securities held near the highest closing level since May. The measure, an outlook for consumer prices known as the break-even rate, climbed Friday after Federal Reserve Chair Janet Yellen set out an argument for keeping policy accommodative.