Inflation expectations hit over two-year high as reflation bets get underway to start 2021

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Bond investors’ assessment of future inflation are heating up amid hopes that vaccine rollouts will help bring about a swifter economic recovery this year. The 10-year breakeven rate, or what holders of Treasury inflation-protected securities anticipate inflation will average over the next decade, rose to 2.01% on Monday, around its highest since November 2018 and also near the Federal Reserve’s key 2% inflation target. The iShares TIPs Bond exchange-traded fund was down 0.1%.
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