The 10-year breakeven rate, a gauge of where investors see annual inflation rates over the next decade, is hovering around 3.03% on Friday, close to a record high, based on Tradeweb data since 2003. The rate closed above 3% for the first time on Thursday, when Federal Reserve Chairman Jerome Powell affirmed that a half-point rate hike is on the table for May. Another measure, known as the 5-year inflation swap 5-years forward, also climbed to its highest since 2014. The rise in inflation expectations is occurring despite the Fed’s hawkish pivot.
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