So You Want To ‘Breakeven’?

So You Want To ‘Breakeven’?

By Kevin Muir of “The Macro Tourist” fame; reposted here with permission I suspect in the coming years, we will hear much more about inflation protected securities (TIPS), and the accompanied derived breakeven rate. It is sometimes confusing to understand how nominal rates, real yields (TIPS yield rate) and breakevens all relate to one another, so I have made up a chart to help visualize the relationships. The white series is the nominal 10-year t-note yield. This is the yield-to-maturi
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4 thoughts on “So You Want To ‘Breakeven’?

  1. Outstanding article, great chart! Wonderful explanation of how the standard, TIPS and breakeven all play together in an expected market. Absolutely a must keep piece for future reference. Most appreciated. Bloomberg’s position hedging chart will be helpful for me using in triple figures. Smile.

  2. Ever since turning my Ad Blocker off as you ask all your posts are riddled with annoying ads from everything including Bitcoin Schemes to Waffles? Think I am turning them back on again :).

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