Breakeven Inflation Rate
Breakeven inflation rate (BEI) is the market-implied average inflation rate over a specified horizon, derived from the spread between nominal Treasury yields and inflation-linked security yields of the same maturity.
Example: If the 10-year nominal Treasury yield is 4.0% and the 10-year TIPS yield is 1.5%, the 10-year breakeven inflation rate is 2.5% per year.
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