Rising 10 Year Treasury Yield Vs. TIPS Hits 2.09%— Refutes “Lowflation” Case

The spread between the 10-year Treasury yield (2.66%) and the 10-year TIPS yield (0.57%) widened on Friday to 2.09%, the highest since September 2014. This is what the Treasury market is now pricing in as its expectations for inflation over the next 10 years: