HSBC's Major Says European, U.S. Inflation Look 'Cheap'

The video tutorial discusses a Bloomberg function used by professionals to analyze the five year forward break evens, which estimate inflation starting in five years. Central banks use these estimates for policy guidelines, aiming for targets around 2% in Europe and the US. The video highlights opportunities in inflation-linked bonds, noting that current valuations appear attractive compared to central bank targets.

What is the significance of the market's estimation of inflation for the next five years?

What does the speaker imply about the attractiveness of linked bonds compared to central bank targets?