Inflation expectations from the TIPS market have declined sharply from the levels seen between October 2012 and April 2013 and are at the lowest levels in more than a year.
The Barclays 5-year/5-year forward breakeven inflation rate is currently at 2.35 percent, down about 16 basis points from two weeks ago.
(Note: The breakeven inflation rate is a measure of expected inflation derived from "nominal" Treasury securities and their "real" counterparts—inflation-protected TIPS securities.)
