Breakeven inflation

Breakeven inflation is the gap between an ordinary Treasury yield and its inflation-protected twin of the same maturity, the inflation rate the bond market is pricing. It is the market expectation an inflation print is judged against, and you can subtract the two Treasury curves yourself in a minute. The inflation lecture uses it as the bar.

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In MochaLearnSee how the Fed moves US markets in MochaLearn
  • Treasury yieldA Treasury yield is the annual return on a US government bond at today's market price; when the price falls, the yield…
  • CPICPI, the consumer price index, is the monthly US measure of what a basket of goods and services costs households…
  • Dot plotThe dot plot is the chart of where each Fed official expects the policy rate to be over the next few years, one dot…
  • 2-year Treasury yieldThe two-year Treasury yield is the bond market's bet on where the Fed will hold rates over the next two years, so it…
  • FREDFRED is the free St Louis Fed database of every major US economic series going back decades, charts and downloads with…
  • Option open interestOption open interest is the number of option contracts that exist at a strike right now, free on any option chain. The…

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