lucky_human_foot

Growth expectations falling as real yields are dropping?

FRED:T10YIE   10-Year Breakeven Inflation Rate
With inspiration from the Financial Times:
https://www.ft.com/content/40d49fbd-34da...

10-year inflation expectations(T10YIE) are stable while the US 10 yield ( US10Y ) and 10-year TIPS (treasury inflation-indexed security, DFII) are falling. This means that real rates are dropping as they are calculated as the nominal rate ( US10Y ) minus inflation expectations(T10YIE).

The Financial Times argue though that as Gold is strongly inversely correlated to 10-year TIPS it should rise to 2100 from 1800 where it is now and that real yields therefore are somewhat imaginary.