Inflation Expectations Decline as Markets Eye Next Week's Critical CPI Report
• Market-implied 10-year inflation expectations have fallen to around 2.16%, down from 2.5% in October, suggesting increased confidence that the Fed can control inflation over the long run.
• The debate continues over whether inflation can be successfully contained by policymakers.
• Analysts are divided on whether inflation will keep falling as consumer spending normalizes post-pandemic, or if more persistence is likely.
• The next major U.S. inflation report on November CPI figures will be released next Tuesday.
• Treasury yields finished mixed on Thursday ahead of the November jobs report, while stocks rose.