Comments from Nomura, downplaying concern over US inflation

Concerns over rising inflation in the U.S. are excessive. Nomura's main points:

  • US 10-year break-even inflation rate +14bps to 2.54% since the end of last month
  • highest since 2012
  • nominal 10-year U.S. yield remains little changed over the same period
  • Many Fed officials still see the pickup in inflation as temporary and the rise in BEI isn't leading to talk of front-loading tapering

US CPI data is due later today: