As the CHART OF THE DAY shows, the so-called real yield on 10-year notes is less than zero for the second consecutive year. That hasn't occurred since the 1970s, according to data compiled by Yale University Professor Robert J. Shiller. The real yield is calculated by subtracting the 12-month percentage change in consumer prices from the notes' yield.

"Negative real rates will remain in place for at least a decade -- and maybe a generation," Garthwaite, who is based in London, wrote two days ago in a report.

Comments: Be the first to add a comment

add a comment | go to forum thread