Fear! Ten Year Treasury REAL Yield Negative Along with TIPS Yields

Fear is still roiling the markets.

The REAL 10-year Treasury yield has gone negative.

real10

Along with Treasury Inflation Protected Securities (TIPS).

tipsomg

Here is the TIPS curve compared with the US Treasury actives curve.

tipscurve

The FRA/OIS is the spread between overnight index swaps (OIS), considered the “risk-free” rate tied to the federal funds rate, and forward rate agreements (FRA), which are tied to Libor. And it is rising fast!

fraoisblowout

It is fear driving markets.

godzilla

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