What do folks use to look at real interest rates in US? Should be US bond yield - inflation rate, but inflation numbers are quarterly. Would I do 10yr bond yield - 10yr TIPS yield? This may be a very dumb Q
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I thought TIPS yield is designed to exactly cancel out inflation. So it should equal inflation, but it does not tell us (yield - inflation), right?
TIPS yield is already the real interest rate. Nominal yield minus TIPS yield is breakeven inflation.
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Though TIPS yield is corrupted with all kinds of shit, eg they are much less liquid than treasuries and tend to sell off in a crisis, which makes them a very bad measure of real yields. Best approach is probably to take nominal yield minus consensus inflation forecast...
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... which is available monthly (eg from Consensus Economics or Bloomberg) or even weekly if you don’t mind a bit of noise.
End of conversation
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