Five Year Breakeven Inflation Expectations

After adjustment for premia, constant over the last three months:

 

Figure 1: Five year inflation breakeven calculated as five year Treasury yield minus five year TIPS yield (blue), five year breakeven adjusted by term premium and liquidity premium per DKW, all in %. Source: FRB via FRED, KWW following D’amico, Kim and Wei (DKW) accessed 6/4, and author’s calculations.