As the debate continues over the potential inflationary impact of President Joseph R. Biden Jr.’s $1.9 trillion “American Rescue Plan,” one key indicator suggests that markets are no more worried about excessive inflation than the Federal Reserve is. “Inflation compensation” in US 10-year Treasury securities has jumped 0.25 percentage point since January 14, when Biden first proposed the package. (Inflation compensation, also known as “breakeven inflation,” refers to the yield on a conventional bond minus the yield on an inflation-indexed bond of the same maturity.) The current value of inflation compensation, ... (full story)