Employing basic bond math, we can decompose the US Treasury bond into two pieces: real rates and break-even inflation expectations. Because real rates (TIPS) and nominal rates (US Treasuries) are directly observable, break-even inflation is relatively easy to determine.

Taking this logic one step further, we can actually decompose a US Treasury bond into three components: 1) growth expectations, 2) a term premium and 3) break-even inflation expectations. A term premium is the extra yield an investor demands for holding longer dated securities, often insurance against an unexpected spike in inflation.

The term premium cannot be directly observed; it has to be calculated using a model. The Adrian, Crump and Moench (ACM) term premium is the one most used by the Federal Reserve (https://www.newyorkfed.org/research/data_indicators/term_premia.html).

So, in the end we have the following identities:

Nominal Rates = Real Rates + Breakeven Inflation

Real Rates = ACM Term Premium + Growth Expectations

Nominal Rates = ACM Term Premium + Growth Expectations + Breakeven Inflation