Real 10-Year Yield

What it means

• The 10-year Treasury yield after subtracting the inflation rate that bond markets expect over the next decade.
• This is roughly the inflation-adjusted return a buyer of a 10-year Treasury can expect to earn. It's one of the most-watched gauges of how tight or loose monetary policy is — when real yields are high, borrowing is genuinely expensive; when they're low or negative, money is effectively cheap.
• Uses TIPS-implied breakeven inflation, which reflects what markets expect inflation to average over the next 10 years (rather than what inflation has been recently).