Monthly Market Update (February 2023): 3 Things You Need to Know

There was a big repricing of inflation expectations over February, as the January Consumer Price Index (CPI) showed an uptick in inflation and the January Jobs report was much stronger than expected. Here are 3 things you need to know:

  1. 2yr U.S. inflation breakevens were up +85 basis points (bps) to 3.18%, having ended January at just 2.33%. This was the second largest monthly move higher since February 2009 after the +87bps move in October last year. (Source: Deutsche Bank, FRED Economic Data)
  2. February saw the 2-year Treasury yield increase more than +70bps and the 10-year Treasury yield increase more than +50bps. Yields move inversely to prices.
  3. Bloomberg’s Global Aggregate Bond Index had its worst February since inception in 1990. (Source: Bloomberg Finance LP)

Sources: J.P. Morgan Asset Management – Economic Update; Bureau of Economic Analysis (; Bureau of Labor Statistics (; Federal Open Market Committee (; Bloomberg; FactSet.


  • The Bloomberg Barclays Aggregate Bond Index is a broad-based index used as a proxy for the U.S. bond market. Total return quoted.
  • The S&P 500 is designed to be a leading indicator of U.S. equities and is commonly used as a proxy for the U.S. stock market. Price return quoted.
  • The MSCI ACWI ex-US Index captures large and mid-cap representation across 22 of 23 developed market countries (excluding the U.S.) and 27 emerging market countries.  The index covers approximately 85% of the global equity opportunity set outside the U.S. Price return quoted.
  • The MSCI Emerging Markets Index captures large and mid-cap segments in 26 emerging markets. Price return quoted (USD).

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