US 30-year yields touched a six-week low today
Short-dated US bonds continue to signal that the Fed is poised to hike rates soon but long-dated bonds and inflation breakevens are showing that it could be a mistake.
US 30-year yields are down almost 30 basis points since hitting 3.25% on Jul 13. The July low of 2.96% gave way today.
US 30-year yields, daily
The even more concerning sign is in 5-year breakevens. They're at the lowest since March and signal average inflation of just 1.45% over the next 5 years, down from 1.70% a month ago.
US 5-year breakevens
If you're looking to trade it. It could be an early indicator about risk aversion and yen strength. USD/JPY is down 10 pips to 123.82 after touching 124.10 at the start of US trading.
