Deutsche Bank launches DB Market-Implied US Inflation Rate index

By Tali David

Minneapolis, Jan. 17 - Deutsche Bank AG announced the launch of the DB Market-Implied US Inflation Rate index.

Deutsche Bank said it is the first index to offer investors an overall measure of inflation expectations implied by the difference in yields between Treasury Inflation-Protected Securities and nominal Treasuries.

As of Friday, the index is forecasting future overall inflation of 1.91% per year.

The index was built as a weighted average of the five-year, 10-year and 30-year on-the-run TIPS breakeven rates. The breakeven rates are the difference between the real yield of the corresponding TIPS and the unadjusted yield of the Treasury with the closest maturity date.

"This benchmark index offers a straightforward way to track market inflation expectations, and we expect it will be a significant barometer for the industry at a time when inflation concerns cannot be overlooked," Aram Flores, head of index research for the Americas, said in a press release.

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