US Treasury Interest Rates Soaring

4/30/22:  With CPI-U annual inflation running at 8.5%, interest rates are soaring.  The Fed appears to be "behind the curve" such that expected inflation defined as the difference between the 10-year TIPS and T-Bond rates. has soared to 2.88%, near its high for my calculations going back to 2004. 

US Treasury Interest Rates Graph

US Fed Funds Rate vs. S&P 500   

CPI vs Fed Funds Rate vs Expected 10-Yr Inflation

LIBOR Rates from 1993 to 4/30/22

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Expected Inflation and Bond Interest Rates

Expected inflation defined as the difference between the 10-year T-bill and 10 year TIPS rates is the highest since I've keep this data.  

CPI vs Expected Inflation Rate

This is bad news as it mean bond investors are starting to believe inflation will get out of hand or at least average 2.94% over the next decade rather than the Fed's target of 2.0%

TIPS Core Yield and I-Bond Base Rates 

Joe Biden (image) visiting the Chevron station on First and Main in Los Altos yesterday

Los Altos Chevron 3/111/22 prices:
Regular $5.899 per gallon
Super 91 $6.399 per gallon


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