Definition
The inflation rate bond markets are pricing in, read from the gap between regular Treasury yields and inflation-protected Treasury yields.
The story
The government sells two kinds of 10-year bonds: one pays a fixed rate, one adjusts for inflation. The difference in what they pay is roughly the inflation investors expect. It's the bond market's own inflation forecast, updated every day.
Why markets watch it
It shows whether investors believe inflation will come back to target.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms