Salient to Investors:

Bank of America Merrill Lynch’s MOVE index, which measures price swings based on options, fell to 55.6, the least since June 5, 2007.

The yield gap between yields on 10-yr notes and 10-yr TIPS fell to 2.35 percent, the lowest in almost 10 weeks and versus the average 2.18 percent over the past decade. The Fed’s preferred measure of inflation expectations, the 5-yr, 5-yr forward break-even rate,  fell to the lowest in a month.

Consumer prices increases have averaged 2.5 percent over the past decade, with a high of 14.8 percent in 1980.

Marc Seidner at Pimco said protecting against inflation is going to become increasingly important and recommended 30-year TIPS.

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