Eric Bush at Gavekal Capital gives a quick reminder that inflation expectations still remain subdued in the US. “Given the decline in commodities, perhaps it shouldn't be too surprising to see breakeven inflation rates rolling over once again”. The first below chart shows 5 year and 10 year TIPS derived breakeven inflation. The second chart is 5-year, 5-year forward breakeven inflation (the preferred inflation rate when Ben Bernanke was the head of the Fed). (VIEW LINK)