Bonds & rates
Break-even inflation
The inflation rate at which a conventional bond and an inflation-linked bond would perform identically.
How it works
It is read straight off the market: the nominal yield minus the real yield on equivalent maturities. Above that rate, the linker wins; below it, the conventional bond does.
It is the cleanest available market forecast of inflation, though it also contains risk and liquidity premiums.
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Educational reference only. Nothing here is investment advice or a recommendation to buy or sell anything, and tax treatment depends on your own circumstances and the country you are in.