“With inflation below target and no indication of an acceleration, the first increase in the fed funds rate, the central bank’s key short-term rate, will not come until July 2015,” Stuart Hoffman, chief economist at PNC Financial Services Group, said in a Wall Street Journal article.
Meanwhile, the inflation break-even rates – the yield difference between U.S. TIPS and regular Treasuries – shrank in response to the lower reading in the Consumer Price Index, with 10-year TIPS break-even rate falling to their lowest in about a year ahead of a $13 billion auction Thursday, Reuters reports.
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For more information on inflation, visit our inflation category.
Max Chen contributed to this article.