Sunday, April 25, 2021

Breakeven Inflation

In light of the search for LIBOR replacement, we can revisit the article written by Brian Romanchuk, 2014 on Bond Economics. A good read.

Excerpt:

"The breakeven inflation rate is a market-based measure of expected inflation. It is the difference between the yield of a nominal bond and an inflation-linked bond of the same maturity."

http://www.bondeconomics.com/2014/05/primer-what-is-breakeven-inflation.html

Image credit - Romanchuk, 2014

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