inflationsbreakeven
The inflation breakeven rate is a theoretical rate of return that an investor would need to earn on a nominal investment to achieve the same return as a comparable inflation-protected investment. In simpler terms, it represents the market's expectation of future inflation over a specific period. It is typically calculated by comparing the yields of nominal bonds (which pay a fixed interest rate) with the yields of inflation-protected bonds (like Treasury Inflation-Protected Securities or TIPS in the United States) of similar maturity.
The difference between the yield of a nominal bond and the yield of an inflation-protected bond of
Investors use inflation breakeven rates as an indicator of inflation expectations. A rising breakeven rate suggests