Quote from makloda:
Unit labor costs and productivity do not show any secondary price effects (in the US, not so in Europe). US GDP is below trend growth and probably will be there over intermediate time frame. Plus, credit dissemination into the corporate and consumer world has been dealt a crushing blow.
At this point, I don't see anything that would push 10y rates or CPI measured inflation expectations higher. The TIPS vs 10y breakeven yield is at a five year low right now.
