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Short-Term Inflation Expectations Have Crashed To 5 Year Lows (In The US)

Tyler Durden's picture




 

With all attention firmly focused on Draghi and Europe's deflationary pressures, it appears the mainstream media forgot to look domestically. With today's weaker than expected PPI, the 2Y Breakeven inflation rate continues to crash- from over 1.00% just a month ago to just 15.5bps this morning. 5Y5Y forwards continue to slide to near record lows across all the majors.

 

2Y Breakevens are crashing...

 

and 5Y5Y forwards - often discussed as the Central Bankers preferred perspective - are near record lows across all the majors...

 

US 5Y5Y Forward inflation pluinged 15bps today to 2.37% and does that look like Abe has stalled the deflationary 'mindset' in Japan?

 

Charts: Bloomberg

 

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Fri, 12/12/2014 - 16:05 | 5545662 LawsofPhysics
LawsofPhysics's picture

Well, it looks like our only export (inflation) is doing well...

Here, accept my FRN, please...

Fri, 12/12/2014 - 16:33 | 5545730 El Oregonian
El Oregonian's picture

"Everybody do the bump (bps)."

https://www.youtube.com/watch?v=cj9_yW8tZxs

Fri, 12/12/2014 - 16:23 | 5545732 max2205
max2205's picture

Dear Santa,

 

All I want for Christmas is a big ass fucking CRASH!

 

Over and out

Fri, 12/12/2014 - 16:36 | 5545791 El Oregonian
El Oregonian's picture

I believe 'Der Leader' also wished this and will take everything but the crash part...

Fri, 12/12/2014 - 16:57 | 5545933 kaa1016
kaa1016's picture

Max, I think your wish is about to be granted.

Fri, 12/12/2014 - 18:55 | 5546488 aVileRat
aVileRat's picture

Resistance is futile, bitch. And yes, a crash is something Santa is going to work towards, or new years.

http://www.bloomberg.com/news/2014-12-12/this-hedge-fund-s-machines-are-...

 

Fri, 12/12/2014 - 16:05 | 5545671 tenpanhandle
tenpanhandle's picture

Bullshit has reached 5 year highs (in the US)

Fri, 12/12/2014 - 16:11 | 5545691 The_Peeper
The_Peeper's picture

No way the consumer having a bit more cash to spend on Chinese imports can offset the economic impact of the implosion of the shale gas revolution

Fri, 12/12/2014 - 16:14 | 5545704 daveO
daveO's picture

Sure, it can. Just kick North Dakota out of the union. They have their own bank, so they are clearly un-American. /sarc 

Fri, 12/12/2014 - 16:20 | 5545724 The_Peeper
The_Peeper's picture

Securitise it and sell it 

Fri, 12/12/2014 - 16:14 | 5545705 Winston Churchill
Winston Churchill's picture

What if they pay down debt, or buy PM's .

Zero sum game anyways.

Does this shitshow collapse before year end as Lagarde forcast ?

Fri, 12/12/2014 - 16:10 | 5545693 Roger Shermanator
Roger Shermanator's picture

And yet I'm still paying record high prices when I go to the supermarket.  If this is deflation, I would hate to see inflation.

Fri, 12/12/2014 - 16:11 | 5545696 GoldenGeezer
GoldenGeezer's picture

Thanks Japan!

Fri, 12/12/2014 - 16:12 | 5545698 the not so migh...
the not so mighty maximiza's picture

whole thing is a crap show

Fri, 12/12/2014 - 16:12 | 5545702 Eagle Keeper
Eagle Keeper's picture

Afternoon mega-ramp to commence shortly....

Fri, 12/12/2014 - 20:39 | 5545706 Creepy A. Cracker
Creepy A. Cracker's picture

And we can't possibly handle buying things for less money each year.  The way prices for TVs, phones, computers have declined. 

 

Oh, wait...  we can.

Fri, 12/12/2014 - 16:19 | 5545721 Bill of Rights
Fri, 12/12/2014 - 16:21 | 5545727 The Shape
The Shape's picture

So we print?

Fri, 12/12/2014 - 16:23 | 5545735 surf0766
surf0766's picture

3:22 PM.. 

Fri, 12/12/2014 - 16:28 | 5545759 GoldenGeezer
GoldenGeezer's picture

I would love to see the "expectations" compared to the actual prints.

Fri, 12/12/2014 - 16:45 | 5545877 ejmoosa
ejmoosa's picture

Time to be honest with ourselves...

Substitute the word with inflation with economic and that sums up the outlook most accurately.

Fri, 12/12/2014 - 16:48 | 5545887 Wait What
Wait What's picture

Great post Tyler, this is the most important measure in determining what the Fed is going to do next. Too bad it doesn't get the coverage it deserves.

No rate hikes, more QE by Summer 2015. Don't know how many times I've said it already this year, but nothing has changed.

Fri, 12/12/2014 - 17:07 | 5545980 Slowdrip
Slowdrip's picture

Short squeeze Monday lookn good, DOW down 300, love adversity....

Fri, 12/12/2014 - 19:51 | 5546703 Ewtman
Ewtman's picture

Oil is headed downward for a long time, however, it will find temporary support soon...

 

http://www.globaldeflationnews.com/oil-light-sweet-crudeelliott-wave-upd...

 

 

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