FATT - Rates Spark: Living With Inflation Risks

• The ECB is looking through higher headline inflation and inflation swaps.
• We doubt these will be enough to change easing expectations in December, but hawkish comment risks will remain a threat to carry trades.
• In the US, inflation prints have not affected breakevens much in recent months, but as a standalone, they point to ongoing above-norm inflation.

For further details see: