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Author: grier22 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 44593  
Subject: TIPS 10 year breakeven rate Date: 9/27/2012 2:14 PM
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WSJ: Higher Inflation Expectations Could Be Boon

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Viewing the Fed this way, many are keen on Treasury Inflation-Protected Securities, or TIPS, a segment of the Treasury bond market whose value increases with higher inflation.

This month, the 10-year breakeven rate--a measure of the yield difference between 10-year Treasury notes and 10-year TIPS--rose to 267 basis points, its highest level since May 2006.

That move, which suggests investors expect the U.S. inflation rate to average 2.67% on an annualized basis over the next decade, reflected concerns that the Fed's newly announced "quantitative easing" stimulus program will accelerate the advance in consumer prices.
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