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
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2 comments:

  1. Stagflationary MarkAugust 16, 2011 at 4:59 PM

    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%.

    ReplyDelete
  2. Stagflationary MarkAugust 16, 2011 at 6:25 PM

    An Unsafe Haven

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

    *cough*

    ReplyDelete