Inflation trend suggests Treasury yields will surprise the Street and won't bottom for months

This post was originally published on link to post

Economic forecaster Lakshman Achuthan sees a bearish trend unfolding that should keep Treasury yields at multi-year lows longer than Wall Street anticipates.

Achuthan, co-founder of the Economic Cycle Research Institute, builds his case on a single chart showing forward looking inflation measures.

His major takeaway: Inflation is in a downturn, and it’s creating an even more challenging environment for yields.

“The chart is showing leading indicators of inflation,” Achuthan told CNBC’s “Trading Nation ” on Friday. “The bottom line signal from the forward looking indicators on the inflation cycle is that it’s going to continue cycling down. It is not transitory.”

While the stock market just wrapped up its best week of the year, the 10-year Treasury Note yield fell to a September 2017 low on Friday. Achuthan contends the weakness is “persistent.”

“There is the future inflation gauge which is designed to anticipate cycle turning points in


Please enter your comment!
Please enter your name here