Breakeven Inflation
Also called: breakeven rate, inflation breakeven, 5y5y forward
Breakeven inflation is the gap between a nominal government bond yield and an inflation-linked bond yield of the same maturity — the inflation rate at which owning either would leave you equally well off. It's the market's real-time inflation expectation, available continuously rather than monthly. It's biased slightly upward by an inflation risk premium and distorted by the linker market's thinner liquidity.
Formula
Breakeven = Nominal bond yield − Inflation-linked bond yield
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