Deutsche Bank Launches Inflation Expectation Index

Published on Tuesday, 17 January 2012 09:43 Written by TradersHuddle Staff

NEW YORK-( Business Wire )-

Deutsche Bank announced today the launch of the DB Market-Implied US Inflation Rate Index (Bloomberg ticker: DBLNBEY), the first index to offer investors an overall measure of inflation expectations implied by the difference in yields between US Treasury Inflation-Protected Securities (TIPS) and US Nominal Treasuries. As of January 13, 2012, the index is forecasting future overall inflation of 1.91% per annum.

This rules-based index is designed to reflect overall future inflation expectations based on the most liquid TIPS, and broadly represents the implied expectations from the entire TIPS market. It was built as a weighted average of the 5-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 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,” said Aram Flores, Head of Index Research for the Americas.

The DB Market-Implied US Inflation Rate Index represents the latest addition to the DBIQ Index family of benchmark fixed-income indices. The DBIQ Index family includes indices covering the global fixed income, FX and commodities asset classes.

Full details of the DB Market-Implied US Inflation Rate Index can be found at http://index.db.com/.

About Deutsche Bank

Deutsche Bank is a leading global investment bank with a substantial private clients franchise. Its businesses are mutually reinforcing. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With more than 100,000 employees in 73 countries, Deutsche Bank competes to be the leading global provider of financial solutions, creating lasting value for its clients, shareholders, people and the communities in which it operates.

www.db.com

Deutsche Bank AGAmanda Williams, + This e-mail address is being protected from spambots. You need JavaScript enabled to view it.