Part 4/5:
To further contextualize these figures, Santelli noted that to find a higher five to ten-year inflation expectation, one must go back to June 2008, which was recorded at 3.4%. The persistence of such inflation outlooks could potentially dampen consumer sentiment further, reinforcing the notion that consumers may not feel completely secure in the economic climate moving forward.
Market Reactions
Market reactions were observed, with the 10-year Treasury yield noted at 4.40%, down four on the week. In contrast, the 2-year Treasury yield rose to 4.35%, gaining four on the week. This divergence reflects market sentiment regarding short-term versus long-term economic conditions, with the short end of the yield curve reacting differently amid ongoing inflation considerations.