the 10year breakeven rate a gauge of where investors see annual inflation rates over the next decade is hovering around 303 on friday close to a record high based on tradeweb data since 2003 the rate closed above 3 for the first time on thursday when federal reserve chairman jerome powell affirmed that a halfpoint rate hike is on the table for may another measure known as the 5year inflation swap 5years forward also climbed to its highest since 2014 the rise in inflation expectations is occurring despite the feds hawkish pivot