Financial Market Signals, Post-FOMC

Higher rates soon, long term inflation expectations anchored, and on term spread signals growth (as do real rates).

Figure 1: Treasury 1 month (blue) and one month forward 2 month (brown), in %. Source: Treasury via FRED.

Figure 2: Five year Treasury-TIPS spread (blue) and five year forward five year Treasury-TIPS spread (brown), in %. Source: Treasury via FRED.

Figure 3: Ten year-three month Treasury spread (blue) and ten year-two year spread (brown), in %. Source: Treasury via FRED.

Figure 4: Five year TIPS yield (blue) and ten year TIPS yield (brown), in %. Source: Treasury via FRED.