5 Year TIPS/Treasury Breakeven Rate is at 2.35%, compared to 2.36% the previous market day and 2.07% last year. This is higher than the long term average of 1.93%.
The 5 Year TIPS/Treasury Breakeven Rate is calculated as the difference between the 5 year treasury rate and the 5 year treasury inflation-indexed security rate. Market participants use this value as what they believe the expected inflation should be in the next 5 years, on average. During the Great Recession, the breakeven rate reached as low as -2.24%.
