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.
As of June 19, the Barclays 5-year/5-year forward breakeven inflation rate was 2.36 percent, about unchanged from the week before.
(Note: The breakeven inflation rate is a measure of expected inflation derived from "nominal" Treasury securities and their "real" counterparts—inflation-protected TIPS securities.)
