TIPS Breakeven Spread Falls to Three-Month Low

The "breakeven rate" - the difference between 10-year nominal Treasury yields and 10-year Treasury Inflation Protected Securities (TIPS) yields - is one market-based measure of expected future inflation. As of yesterday the breakeven rate was 2.30%, down 30 basis points from the recent peak of 2.65% on April 11, and the lowest level in three months (since February 17).