Tuesday, August 16, 2011

Historical Treasury Bill Real Yields

Click to enlarge.

I've zoomed in on the yields from -10% to 10% in order to better show the detail. In other words, some of the data is off the chart.

This chart explains why I was and am willing to lock in real yields on long-term treasury inflation protected securities (TIPS).

If you thought the real yields of the 1970s were bad, then just look at World War II. Real yields can potentially get a lot worse.

This is not investment advice.

Source Data:
FRB: Selected Interest Rates
St. Louis Fed: CPI


Stagflationary Mark said...

Keep in mind that we continue to pull the 10 year moving average down.

Since late 2008 the real yield has averaged roughly -2.5%.

Stagflationary Mark said...

An Unsafe Haven

Fortunately, that's just a work of science fiction. It could never happen here!