US Breakevens Should Be Higher: Dhingra

Guneet Dhingra, head of US rates strategy at BNP Paribas, stated that US breakeven inflation rates should be higher. Dhingra joined Parametric fixed income portfolio manager Nisha Patel on Bloomberg Real Yield to discuss economic indicators. The discussion touched upon recent US producer price data, which rose in May at the fastest pace in over three years. This acceleration in producer prices is attributed, in part, to ongoing inflation pressures stemming from the Iran war fallout. The implication of higher producer prices suggests a potential for increased consumer inflation, which would typically lead to higher breakeven inflation expectations.