According to The Kobeissi Letter, the 2-year breakeven inflation rate has surged to 3.27%, marking the highest level since the March 2023 Banking Crisis. This indicates that the market anticipates inflation to exceed 3.0% over the next two years, reflecting heightened inflation expectations and potential volatility in the bond market. Investors may need to adjust their strategies accordingly.

According to The Kobeissi Letter, the 2-year breakeven inflation rate has surged to 3.27%, marking the highest level since the March 2023 Banking Crisis. This indicates that the market expects inflation to exceed 3.0% over the next two years. Bond investors are therefore increasingly worried about inflationary pressures, as the 2-year inflation breakeven has more than doubled in recent months.