EFTA Document EFTA01385929

27 March 2015 US Fixed Income Weekly United States Treasuries Rates Gov. Bonds & Swaps • Our 5s-10s UST model shows the curve is 60 bps (3.9 standard errors) too flat to Fed fund expectations and inflation outlook. We explore some factors that could drive this departure from the model fair value. • The difference between survey-based and market-based inflation measures could explain for about 35 bps of the deviation in our model. Higher term premium in the 5y sector could also accou