30-year Breakeven Inflation Rate

T30YIEM • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

2.31

Year-over-Year Change

1.32%

Date Range

2/1/2010 - 7/1/2025

Summary

The 30-year Breakeven Inflation Rate measures market expectations for long-term inflation by comparing yields of nominal and inflation-protected Treasury securities. This metric provides crucial insights into investors' anticipated inflation levels over the next three decades.

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

The breakeven inflation rate represents the difference between nominal and real yields of Treasury securities, effectively indicating the market's inflation expectations. Economists and investors use this indicator to gauge long-term inflation expectations and potential economic trends.

Methodology

The rate is calculated by subtracting the yield of a 30-year Treasury Inflation-Protected Security (TIPS) from the yield of a nominal 30-year Treasury bond.

Historical Context

Central banks and policymakers use this metric to inform monetary policy decisions and assess market expectations about future economic conditions.

Key Facts

  • Represents market-implied inflation expectations over 30 years
  • Derived from the difference between nominal and inflation-protected Treasury securities
  • Provides insight into long-term economic outlook

FAQs

Q: What does the 30-year Breakeven Inflation Rate indicate?

A: It shows the market's expected average inflation rate over the next 30 years. A higher rate suggests investors anticipate higher future inflation.

Q: How do investors use this metric?

A: Investors use it to make informed decisions about long-term investments and hedge against potential inflation risks.

Q: How is the rate calculated?

A: It's calculated by subtracting the 30-year TIPS yield from the 30-year nominal Treasury bond yield.

Q: Why is this metric important for policymakers?

A: It helps central banks understand market expectations and potentially adjust monetary policy to manage inflation.

Q: How often is this data updated?

A: The data is typically updated daily during market trading hours, reflecting current market conditions and expectations.

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Citation

U.S. Federal Reserve, 30-year Breakeven Inflation Rate [T30YIEM], retrieved from FRED.

Last Checked: 8/1/2025