10-Year Breakeven Inflation Rate
T10YIE • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
2.35
Year-over-Year Change
-1.67%
Date Range
10/8/2021 - 8/7/2025
Summary
The 10-Year Breakeven Inflation Rate measures market expectations of future inflation over the next decade by comparing Treasury yields. It provides a critical forward-looking indicator of anticipated price changes and economic sentiment.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
This metric represents the difference between nominal Treasury bond yields and Treasury Inflation-Protected Securities (TIPS) yields of the same maturity. Economists and investors use it to gauge market-implied inflation expectations and potential monetary policy adjustments.
Methodology
The rate is calculated by subtracting the 10-year TIPS yield from the 10-year nominal Treasury bond yield, reflecting the market's anticipated average inflation rate.
Historical Context
Central banks like the Federal Reserve closely monitor this indicator to inform monetary policy decisions and assess inflation expectations.
Key Facts
- Represents market-based inflation expectations over 10 years
- Derived from the difference between nominal and inflation-protected bond yields
- Serves as a forward-looking economic indicator
FAQs
Q: What does the 10-Year Breakeven Inflation Rate indicate?
A: It shows the market's expected average inflation rate over the next decade, reflecting economic sentiment and inflation expectations.
Q: How is this rate different from other inflation measures?
A: Unlike backward-looking measures, this rate is forward-looking and represents market expectations rather than historical data.
Q: How do investors use this indicator?
A: Investors use it to make investment decisions, assess potential real returns, and understand market inflation expectations.
Q: How does the Federal Reserve use this information?
A: The Fed uses this indicator to help calibrate monetary policy and assess the effectiveness of its inflation management strategies.
Q: How often is this data updated?
A: The 10-Year Breakeven Inflation Rate is updated daily, reflecting real-time market dynamics and changing economic conditions.
Related News
U.S. Stock Market Rises Amid PCE Inflation Report Analysis
U.S. Stock Market Climbs Amidst Insights from PCE Inflation Report Investors in the U.S. stock market are focusing on the most recent PCE Inflation...
U.S. Treasury Yields Decline After Inflation Data Meet Expectations
US Treasury Yields Drop as Inflation Data Meets Expectations US Treasury yields have seen a noticeable decline recently, as the latest inflation da...
U.S. Treasury Yields Increase Amid Strong Economic Growth and Inflation Concerns
Treasury Yields Surge Amid Economic Growth and Inflation Concerns Treasury yields are surging as investors closely monitor the evolving U.S. econom...
Gen Z In the U.S. Shifts From Spending To Saving Habits
How Gen Z's Shift from Spending to Saving is Impacting the US Economy Recent trends indicate a significant shift in the spending habits of Gen Z, w...
S&P 500 Rises With Optimistic U.S. Inflation Report
S&P 500 Soars: Positive U.S. Inflation Developments The S&P 500, a primary stock index that tracks the performance of 500 major U.S. companies, has...
U.S. Stock Futures Stagnant Despite Positive Jobless Claims and GDP
Why US Stock Futures Remain Stagnant Despite Positive Economic Indicators The current investment landscape is puzzling for many as US stock futures...
Related Trends
10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
T10Y2Y
3-Month Treasury Constant Maturity Minus Federal Funds Rate
T3MFF
5-Year Treasury Constant Maturity Minus Federal Funds Rate
T5YFF
Moody's Seasoned Baa Corporate Bond Yield Relative to Yield on 10-Year Treasury Constant Maturity
BAA10Y
30-year Breakeven Inflation Rate
T30YIEM
1-Year Treasury Constant Maturity Minus Federal Funds Rate
T1YFF
Citation
U.S. Federal Reserve, 10-Year Breakeven Inflation Rate [T10YIE], retrieved from FRED.
Last Checked: 8/1/2025