Subject: Re: OT: Reported U.S. Inflation
The yield on 10 year inflation protected US government bonds is about 1.77%.

The average of the yields of the equivalent products from Canada, the UK, Germany, France and Italy is about 1.37%. One could interpret the gap as some unknown mix of the expectation of a weaker currency and the expectation of dodgier inflation data.

Isn't the yield primarily determined by the bond market's expectation of future inflation, as it is for all long term government bonds?

Elan