The document discusses the relationship between central bank liquidity and real yields, breakevens, and the 5y5y nominal rate. It highlights how central bank liquidity has been more associated with real yields than breakevens, with real yields falling when balance sheet expansion slows. The document also notes a change in the relationship since the financial crisis, suggesting that risk assets drive real yields and breakevens anticipate liquidity injections. Additionally, it discusses the correlation between 5s10s and real yields, and the impact of liquidity on the 5y5y nominal rate.
documents/vol00010-efta01362016-pdf.pdf
{"title":"US Fixed Income Weekly","document_date":"2015-09-04","document_type":"tabular","key_organizations":["Deutsche Bank","Bloomberg Finance LP","Federal Reserve"],"reference_numbers":["DB-SDNY-0051313","SDNY_GM_00197497","EFTA01362016"]}